Last Updated on March 19, 2024 by newseditor
The United Arab Emirates (UAE) stands as one of the countries that rapidly adopted non-fungible tokens (NFTs). In no time, NFTs became a cornerstone of numerous economic activities in the country. The NFTs market is predicted to hit a value of over $4.7 billion by 2028. This growth is estimated to maintain a Compound Annual Growth Rate (CAGR) of approximately 32.1% between 2022 and 2028.
The UAE NFT Market
There has been an increase in NFT-related activity across the Middle East and Africa, especially in the UAE. This increase in NFT trading and development comes despite several other nations moving to place harsh regulations and restrictions on NFTs.
The emergence of new marketplaces that facilitate easier buying, selling, and trading of NFTs for the public contributed to the massive expansion of the UAE’s NFT market. The market has seen the entry of various participants, including NFT-focused startups and cryptocurrency exchanges. These platforms’ presence has significantly contributed to the surge in NFT trading volumes and values, a trend expected to persist in the forthcoming years.
Dubai Culture’s NFT initiative also launched the MORROW curatorial platform. This contributed to the growing adoption of NFTs and fostering a robust NFT marketplace in the UAE. This upward trajectory is anticipated to persist for the next three to four years, driven by international enterprises seeking opportunities within the expanding UAE market.
Apparel Group’s TOMS Middle East introduced an NFT showcasing one of their signature shoes, with earnings going to the International Medical Corps. This is just one example of how NFTs may have a beneficial social effect. Smart contract technology manages the funds made.
Moreover, the growing demand for NFT items such as sports videos and art is pushing new companies into the UAE’s NFT sector. Positive government regulations and a conducive business climate have contributed to the growth.
Art is one of the most common uses of NFTs. There have been several art shows that incorporated NFTS. Art Dubai is a good example. In 2022, the Art Dubai launched Art Dubai Digital. Art Dubai Digital was a new dedicated section that looked at how NFTs, cryptocurrencies, video art, and virtual reality (VR) had developed since the 1980s when digital art first gained popularity. It also honored those who are setting the standard in this quickly growing and evolving field of digital art.
Gaming and NFT in the UAE
The UAE’s NFT industry is expected to expand as a result of the rise of blockchain-based gaming. Crypto or NFTs are often awarded as prizes to participants in these gaming tournaments.
The Abu Dhabi government-backed AD Gaming project partnered with regional cryptocurrency businesses such as Attarius Network with the goal of expanding potential in blockchain-based gaming. The purpose of their partnership is to provide an open and welcoming NFT environment that actively involves players.
Takeaways
Just like many other countries, the UAE quickly adopted NFTs. The UAE has a very business-friendly environment, especially for new technologies and startups. Hence, it is not surprising that the country has been setting itself up as a significant global player in the thriving NFT sector. As more companies, corporations, and celebrities join this movement, the NFT market in the UAE continues to expand steadily.
