*By Wallace Erick
NFTs are collectibles that operate like a digital certificate registered in the blockchain to ensure the authenticity of its owners, thus making its total or partial copy impossible. They can be used in a variety of ways. An acronym for non-fungible tokens, the NFTs have been the topic of discussions regarding the so-called Web 3 after some millions have been spent to buy this type of online asset.
The concept of metaverse broke out in 2021 and has since made the NFT market accompany this growth. As the cryptocurrency ecosystem have been globally adopted, blockchain is attracting attention from some major players and investors.
In the Arab countries, we have the city of Dubai, one of the most important in the United Arab Emirates, as one of the friendliest towards NFT and crypto trading, hosting major events like Crypto Expo and Blockchain Week, always addressing the need to regulate this market.
This is the result of an agreement signed between local authorities, which provide a regulated ecosystem for companies that seek local and international opportunities, with an ideal environment for startups to operate their global expansion.
The percentage of people in the UAE that own NFTs is more than double the global average. The government itself has embraced the idea, and in addition to buying metaverse lands in The Sandbox to create virtual offices, it has launched its own collection of physical and NFT stamps in celebration of the 50th anniversary of its National Day on December 2, 2021.
Four stamps were launched, the main one being the Golden Jubilee 2021, which contains 1-gram fine gold bar and a QR Code containing an embedded chip to verify its exclusiveness.
Furthermore, Dubai Culture is presenting its NFT gallery, which will include 50 exclusive pieces by famous UAE artists in partnership with the Morrow Collective, an NFT curatorial platform. Called 50/50, the show also honors the 50th anniversary of the UAE and presents works by the likes of Khalid Al Banna, Alia Al Gaoud, Dalal Ahmed, Marwan Shakarchi, and Gigi Gorlova, that can be seen in the marketplace of Open Sea.
Saudi Arabia announced it will invest over USD 6.4 billion in metaverse and blockchain to reduce the dependence on oil. Although the oil prices are high right now, sales of fossil fuels tend to decrease after the Organization of Petroleum Exporting Countries (OPEC) members sign an agreement to reduce the oil production.
Saudi Arabia’s Communications and Information Technology minister Abdullah Alswaha said that these investments are expected to drive the country towards digital growth. Out of this investment, USD 1 billion will be directed to the NEOM Tech & Digital Company, a company that is expected to launch its own metaverse.
The Arab nations have much to gain from the blockchain technology and this world of NFTs. But there are still many barriers to be broken.
Although a 400% growth is predicted in investments in blockchain over the following four years to avoid frauds, boost security, and improve public administration, the governments are still unprepared for a digital transformation as significant as this.
Although some nations still forbid financial institutions to trade cryptocurrencies and crypto exchanges to operate in their jurisdictions, I believe the desire to maintain the UAE at the cutting edge of the global digital change will be the kickoff for this great revolution from which the Arab nations only have to gain.
Wallace Erick is tech lead at Orbital, an innovation project company
Translated by Guilherme Miranda
