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Explosive growth in Web3: UAE and MENA region poised to lead crypto, DeFi, and Metaverse revolution

By Puja Sharma

April 16, 2024

  • AI
  • Bitcoin
  • Decentralisation
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Web3, Indian marketThe latest DMCC Future of Trade report on Web3 examines the drivers of growth and digital decentralisation in crypto, metaverse and DeFi

  • Metaverse global market value projected to rise to $3.4 trillion by 2027, with DeFi to reach $600 billion by 2032
  • Artificial Intelligence will accelerate innovations in Web3
  • The UAE is a global leader in crypto regulation through investor-friendly approach
  • DMCC is home to the largest concentration of Web3, crypto, and blockchain businesses across the MENA region

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, titled “Digital Decentralisation: Crypto, DeFi and the Metaverse,” explores the market outlook and opportunities for Web3 trends rooted in a blockchain-based digital infrastructure, including cryptocurrency, decentralised finance (DeFi), and the metaverse. The report assesses recent challenges in these sectors and forecasts a period of maturity, with recommendations for industry and regulators to nurture and fast-track industry growth in the coming years.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC said: “Our latest Future of Trade report showcases the exceptional growth on the cards across Web3, from crypto and DeFi, to AI and the metaverse. The global metaverse market is projected to rise to over $3.4 trillion by 2027, with advances in AR/VR technology opening a vast realm of opportunities beyond gaming and e-commerce to real estate, retail, education, and healthcare. Digital decentralisation is perhaps the most seismic industry trend in the technology era and the insights in our Future of Trade report reinforce how Dubai and the UAE are supporting its growth trajectory with an investor-friendly approach that balances innovation with the need for consumer protection. I believe that DMCC is perfectly positioned to assist the next wave of global Web3 companies fully seize and capitalise on the rich opportunities in this fast-moving landscape.”

The market size for the metaverse is set to rise to $3.4 trillion by 2027 supported by road-tested use cases and the rapid advancements of Artificial Intelligence. The global DeFi market is expected to grow from $13.6 billion in 2022 to $600 billion by 2032, driven by the demand for fast and feeless financial services. Meanwhile, the crypto market appears set to stabilise after a period of turbulence, with 2023’s Bitcoin revival casting a spotlight on renewed appetite among industry and institutions for durable and value-added services.

However, much depends on the path regulators take and their ability to balance innovation, consumer protection, and fraud risk. The report reviews government approaches across key regions, namely MENA, Asia, Europe and the United States. It finds that innovation hubs are emerging in countries like the UAE, which secured $25 billion of crypto transactions in 2022, and is pushing to attract further investment through accommodative regulatory stances.

Belal Jassoma, Director of Ecosystems, DMCC said, “With a positive and progressive approach to regulation, active engagement with market players, and ample opportunities to innovate and grow, this report demonstrates why Dubai remains a premier hub for Web3 businesses. Through DMCC Crypto Centre we have enabled one of the most supportive ecosystems in the world for those operating in this space, expanding last year to over 600 members with the provision of dedicated services and top ecosystem partners. I believe that the critical insights and perspectives contained in our Future of Trade report will give further confidence to our members as well as to new market entrants looking to grow from Dubai.”

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