DMCC – the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise – today released a special edition of its Future of Trade thought leadership report focused on Web3, examining the key drivers of growth, innovation and digital decentralisation in a number of technology trends.
The report "Digital Decentralisation: Crypto, DeFi and the Metaverse" examines Web3 trends, including cryptocurrency, DeFi, and the metaverse, predicting a mature period with opportunities for growth. It anticipates the metaverse market to reach USD 3.4 trillion by 2027, driven by AI advancements. The DeFi market is forecasted to grow from USD 13.6 billion in 2022 to USD 600 billion by 2032 due to demand for fast, feeless financial services. The crypto market is stabilizing post-turbulence, highlighted by Bitcoin's resurgence in 2023, signaling renewed interest from industry and institutions. Regulatory paths will heavily influence growth, with countries like the UAE fostering innovation through accommodating regulations.
Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, emphasizes the potential growth of Web3 technologies highlighted in their Future of Trade report. With the global metaverse market projected to exceed USD 3.4 trillion by 2027, advancements in AR/VR technology offer diverse opportunities beyond gaming and e-commerce. Sulayem notes Dubai and the UAE's supportive regulatory environment, balancing innovation with consumer protection, positioning DMCC to aid Web3 companies in seizing opportunities.
Belal Jassoma, DMCC's Director of Ecosystems, underscores Dubai's role as a leading hub for Web3 businesses, citing the DMCC Crypto Centre's supportive ecosystem with over 600 members and dedicated services. He believes the insights from their report will boost confidence among existing members and newcomers alike.
The Future of Trade report outlined several important industry and regulatory recommendations to help drive the evolution of Web3 and shape the next phase of its growth:
- Use principle-based regulation: By recognising the innate potential of crypto and metaverse technologies, and prioritising consultative regulation, governments can create a principle-based regulatory framework that protects consumers and supports innovation.
- Increase public and private engagement: All stakeholders should engage regularly and in a meaningful way to ensure that market developments and issues are dealt with swiftly and effectively, and to improve public awareness and education about risks.
- Promote Web3 innovation through industrial clustering: Companies and start-ups in the Web3 space can foster innovation through dedicated sector ecosystems such as the DMCC Crypto Centre, which enable knowledge exchange, education, access to capital and talent, and opportunities to tap into global business networks.
- Prioritise education and recruitment as the key to Web3 growth: In order to leverage Web3 technologies and maximise their benefit, industries should give priority to education, nurturing of new tech talent, provision of in-house training, and financial resources.
- Provide sustained long-term investment: Companies that invest and understand how markets operate will be best placed to reap the financial rewards of these technologies in the future.
- Develop Web3 adoption and scalability plans now: Companies should kickstart immediate preparations for Web3 adoption through investment, training and board-level strategies. Any delay places a business at considerable risk of competitive disadvantage.
The DMCC Crypto Centre is a comprehensive ecosystem for companies that develop Web3 and blockchain technologies, and associated value-added services, providing everything that crypto businesses and entrepreneurs need to set up and scale their operations. Having grown to over 600 members, and counting a number of industry leaders as ecosystem partners including Bybit, Solana and TDeFi, the DMCC Crypto Centre plays a major role today in supporting the growth of start-ups and reinforcing Dubai’s status as one of the major global hubs for Web3 innovation.
News Source: Dubai Media Office
