< Previous10 AB LEADERS April 2023 How Dubai ranked fi rst in the 2023 Prime Residential World Cities Index The boom times continue in the emirate 3% Dubai's estimated GDP growth in 2023, with modest annual infl ation of about 3 percent, according to S&P Global REAL ESTATE | tions, and amended visas continue to attract residents to Dubai. The Prime Residential World Cities Index by Savills proves how signifi cant the performance of Dubai’s residential sector has been. We remained one of the world’s most attractive real estate markets, outperforming major cities like Paris, Madrid, Barcelona and Mumbai. Globally, average prime rental values increased by 5.9 percent. But Dubai’s real estate sector is leading the charge, having recorded prime rental gains of 22.9 percent. In part, we can attribute this growth to uncertainty in the buying sector. Rising interest rates and the looming threat of infl ation see newcomers adopt what Savills describes as a ‘wait and see’ approach. However, that’s not enough to sustain the trends we’re seeing. An increasing number of people are relo- cating to Dubai who are more selective regarding investment or purchasing – and opt for leasing instead. BY AHMED AL SUWAIDI,MANAGING DIRECTOR – RESIDENTIAL COMMUNITIES, DUBAI HOLDING ASSET MANAGEMENT D ubai is an incredible place to live – and the booming real estate market is proof. Dubai’s real estate market has been moving from strength to strength. Economic growth underpinned by the leadership’s diversification agenda, enhanced business and living legisla- Key industry The real estate market in Dubai continues to rise comparable to other big centres in the worldarabianbusiness.com 11 Resilience Dubai’s real estate sector will remain stable in 2023 despite global economic headwinds, according to S&P analysts At Dubai Holding Asset Manage- ment (DHAM), we saw a parallel uptick in our residential leasing portfolio’s robust performance. In 2022, our communities welcomed thousands of new residents and maintained an occupancy rate of above 95 percent across its 15 communities. Premium assets such as Bluewaters, City Walk and Manazel Al Khor maintained high retention levels, echoing Dubai’s thriv- ing luxury real estate market. Their link to leading retail and lifestyle destina- tions is a huge draw to residents who want their living experience to extend beyond the residential unit. The rental market allows for conve- nience and reliability for those in the market for new homes. In our experi- ence, residents can give up some of the homeownership and management responsibilities if they can rely on an established organisation like ours to easily facilitate home maintenance and ensure community upkeep. Such alter- natives are attractive to residents who crave simplicity and reliability, espe- cially when new to Dubai. Future outlook The Savills report indicated that many of the prime resident markets in leading global cities are heading towards a slowdown this year. According to the same report, Dubai is not among them. The rental market’s prices in Dubai are more attractive compared to other global business centres, according to JLL. Economic headwinds and chang- ing interest rates are universal threats, however, the city’s real estate market is likely to maintain upward momen- tum. While the oil sector underpins the UAE’s economic growth, focused economic diversifi cation eff orts by the leadership over the past two decades are paying off . Along with real estate, the tourism, trade and aviation sectors will grow sustainably and moderately at 3.5 percent, according to Emirates NBD analysts. The real estate market is maturing, in line with global business cities. Government-led digital transformation is promoting innovation and competi- tion in the sector. We were among the ing 10-year Golden and Retirement Visas – provide an impetus for foreign- ers seeking new business and profes- sional opportunities in Dubai. Expats, professionals and families alike, continue to see value in laying roots here. HSBC’s Expat Explorer Survey 2021 found that the MENAT region earned the highest-ranking for quality of life. A cultural melting pot, the UAE ranked as one of the top countries where children learned an openness to new cultures. The Dubai Urban Plan 2040 is modifying the city’s residential struc- ture to accommodate its growing population sustainably. DHAM’s tenant-centric approach already refl ects this vision, and we’re aligning future enhancements with its guiding principles, from new community facil- ities – including an overhaul of well- ness facilities at Layan – to enhanced digital features and sustainability. Sustainably-built and healthy communities, fl exible transportation, increased green spaces and planning governance – the Plan’s pillars refl ect the expectations of modern, socially conscious individuals. Dubai Urban Plan 2040 will further build on Dubai’s liveability index and further propel the real estate sector. | REAL ESTATE $143.7BN The value of real estate transactions in Dubai in 2022, a 76.5 percent increase from 2021 first to offer direct debit and online leasing payment through our DubaiAM Life app and are pleased to see the prac- tice catch on with the Dubai Land Department integrating it into their digital solution. Dubai continues to attract more high-net-worth individuals and skilled talent, with economic strategies such as the Dubai Economic Agenda d33 promoting greater investment and opportunities. New business legislation and enhanced visa regulations – includ- Stability Al Suwaidi says the real estate market is maturing in line with global cities12 AB LEADERS March 2023 12 AB LEADERS March 2023 COVER STORY The quest for disruption Vigen Badalyan, co-founder of SoftConstruct, reveals how leaders need to focus on the future to find success now W hat is the Fastex Ecosystem? The Fastex Ecosystem is built around the Fastexchain block- chain, which we’ve named Bahamut and features a new consensus mech- anism known as POSA, or Proof of Stake and Activity. The native token of the Bahamut blockchain is Fastto- ken FTN which recently went through IEO and is now publicly listed on online exchanges, including the Fastex Exchange. As for the Mainnet, which refers to the main, publicly available block- chain network, is set to go live on May arabianbusiness.com 13 | VIGEN BADALYAN arabianbusiness.com 13 New technology Fastex ecosystem operates as a branded house for Fastex products, including Fastex Verse, ftNFT marketplace, Fastex Chain, Fastex Pay crypto payment system, Fasttoken and Fastex Exchange crypto and exchange platform 3 and we decided to name our Main- net Sahara. The Bahamut Blockchain offers a validator program that allows users to earn rewards by staking their Fast- token on the network and participat- ing in the validation process, they are equivalent to the miners in POW networks. The validator program has 20480 available spots, out of which 4000 have already been taken. This program is a critical aspect of the Bahamut Blockchain, as it helps to ensure the security and reliability of the network. The execution layer of the validator program is called Caravan. The Fastex Ecosystem is also stocked with an NFT marketplace called ftNFT, payment solution called Fastex Pay its metaverse solution Fastexverse and as mentioned above its own crypto exchange, Fastex Exchange. What is the ftNFT Marketplace? ftNFT is the fi rst-ever Phyigital NFT Space in the world, combining phys- ical and digital arts. It brings together the world of digital art and physical art by creating unique and tangible experiences. The ftNFT phygital space is designed to be accessible to every- one, regardless of their knowledge of NFTs. The store provides a welcoming environment where visi- tors can learn about NFTs and expe- rience the world of digital art in a hands-on way and artists can make their arts available both physically and digitally. ftNFT has opened two phygital stores in Dubai at the Mall of the Emirates and the Dubai Mall. The Dubai Mall’s opening ceremony was followed by the International NFT Awards ceremony, where NFT artists were recognized for their contribu- tions to the digital art world. Everybody’s talking about the eye-like sculptures, please share with us, what is the AKNEYE project? AKNEYE is a one-of-a-kind project that brings together more than 300 talented artists from vari- ous corners of the world and provides them with a distinctive platform to showcase their emotions. AKNEYE project has created eye-shaped sculptures, which have been sent to 10 different locations across the globe, includ- ing Dubai, Kiev, Tokyo, New York, Yerevan, London, Paris, Berlin, Venice, Istanbul, Almata, Amster- dam, Milan and Barcelona. The artists will be using these sculptures as a canvas to create a unique form of art that combines physical and digital elements. Furthermore, these eye sculptures and the resulting artwork will be transformed into NFTs - a fascinating development in the world of art. Can you walk us through the process of buying or selling an NFT on the ftNFT platform, and how does it compare to other marketplaces in terms of ease of use and transaction fees? To buy and sell NFTs on the market- place, you need to create an account on Fastex Exchange fi rst. Once you’re registered on Fastex and have passed the KYC, you must replenish your wallet with a supported cryptocur- rency. Then, you can make purchases on the ftNFT marketplace or sell your assets. On the other hand, if you wish to purchase an NFT at the ftNFT Phygital stores, you can browse through the marketplace on the terminals and buy the NFT you select with a single tap of your card. Looking ahead, what are the plans for ftNFT in terms of growth and expansion, and how do you see the marketplace evolving over time? ftNFT is working on making NFTs and digital art more accessible to the public; the platform wants to help both world-known and emerging artists digitise their art and attract wider audiences. Growth, expansion, and evolution all depend on how well the brand delivers what the audience needs and looks for, and ftNFT has proven time and time again that it has the ability to do it. How do you see NFTs impacting the art world, and do you think they will change the way we view and value art? $20.44BN The value of the global non-fun- gible token (NFT) market in 2022, according to Grand View ResearchCOVER STORY | 14 AB LEADERS April 2023 NFTs have had a significant impact on the art world by introducing a new form of digital ownership and authentication for art pieces. With NFTs, artists can sell unique digital artworks as one-of-a-kind items, just like physical paintings or sculptures. This has opened up new oppor- tunities for artists to make most of their digital creations, which previ- ously could be easily copied and distributed without the artist’s control. NFTs also provide collec- tors with proof of ownership and can increase the value of artwork, leading to a surge in sales and prices of NFTs. What are some of the benefi ts of using NFTs, both for creators and buyers? NFTs have put forward a new way in trading collectibles. Now artists can make the most out of their art by creating digital assets that can be bought and sold worldwide with no intermediaries or middlemen involved. As for the collectors, they have the advantage of keeping all the art they own in one virtual space that they can access wher- ever they go. Royal tribute The portrait of Dubai Ruler Sheikh Mohammed Bin Rashid Al Maktoum by John Charles was sold for AED44,000 ($12,000) Platform Badalyan says ftNFT is the fi rst NFT marketplace that created a phygital space NFTs have had a signifi cant impact on the art world by introducing a new form of digital ownership and authentication for art pieces arabianbusiness.com 15 Enthusiast NFTs have put forward a new way in trading collectibles | VIGEN BADALYAN Digital art Fastex Ecosystem, powered by SoftConstruct, has pulled off its unique NFT art physical stores strategy in Dubai Creative Badalyan says there are several legal and regulatory issues that creators and buyers of NFTs should be aware of $3.55BN The projected revenue in the NFT segment in 2023, according to Statista Trust The transparency aspect of the ftNFT marketplace is simple because the entire project is built on the blockchain which guarantees transparency and accountability, Badalyan says Market leader SoftConstruct is known to constantly try things out and let its ideas evolve in a newer direction16 AB LEADERS April 2023 How to speed up metaverse adoption? Localise it By localising metaverse experiences and content, it will be possible to reach a broader audience and increase user engagement $82BN The estimated value of the global metaverse market in 2023, according to Statista METAVERSE | augmented reality (AR), and other immersive technologies using an Avatar. With the potential for limitless possibilities, it is no surprise that the metaverse is drawing attention from a diverse global audience. However, as with any new technol- ogy, there are challenges to overcome. One of the biggest challenges facing mass adoption of the metaverse is localisation. The metaverse is a global platform, and to achieve mass adop- tion, it needs to cater to a diverse audi- ence. This means it’s essential to local- ise metaverse experiences and content to suit the needs of diff erent cultures and languages. Localisation involves adapting content and experiences to meet the cultural, linguistic, and other require- ments of diff erent regions. It is more than just translating words; it is about adapting the content to suit the local context. English may be the lingua franca of the internet, but it is by no means the only language spoken in the world. To truly reach a global audience, the metaverse must support a wide range of languages. This goes beyond providing real time translation. There must also be culturally relevant content that resonates with users in diff erent regions. And this will include everything from language to cultural references, graphics, and user interfaces. By localising metaverse experiences and content, it will be possible to reach a broader audience and increase user engagement. It will also help to elimi- nate barriers to entry and foster a sense of inclusivity. Localisation can help increase revenue for metaverse devel- opers as it creates more opportunities for monetisation. Localising metaverse experiences and content is crucial for driving mass adoption and aiding in the evolution of customer behaviour and engagement within the digital world. The metaverse has the potential to transform how we interact with each other and with the world around us and, by embracing localisation, we can ensure that the metaverse is accessible to everyone, regardless of their language, culture, or location. BY SANDRA HELOU, CO-FOUNDER AND CHIEF COMMERCIAL OFFICER AT METAPOLIS A s the popularity of metaverse experiences continues to grow, it is becoming increasingly evident that localisation is essential for mass adoption. The metaverse is a term used to describe a virtual world where users can interact with each other through the web, virtual reality (VR), Emerging tech Localisation involves adapting content and experiences to meet the cultural, linguistic, and other requirements of different regionsarabianbusiness.com 17 Virtual world Localisation is crucial for the mass adoption of the metaverse Beyond user relevance and reso- nance, there are additional benefi ts of localisation. However, it’s important to note the metaverse will not be driven by one overarching aesthetic or ‘owner’. A localisation approach supports in adhering to regional rules and regula- tions along with: Increased Engagement and Interaction Localising content in the metaverse can help brands increase engagement and interaction with users from diff erent countries and cultures. As the metaverse is a global platform, brands need to adapt their content to meet the linguis- tic and cultural requirements of users from different regions. By localising content, brands can communicate more eff ectively with users, build trust, and increase engagement. One example of a brand that has successfully localised content for the metaverse is luxury fashion house Gucci. It created virtual clothing items that users can purchase and wear in the metaverse. The items are designed to refl ect regional fashion trends and are available in diff erent languages and currencies. By localising their virtual clothing items, Gucci has been able to connect with users from diff er- ent regions and increase engagement in the metaverse. Improved User Experience Localising content in the metaverse can also improve the user experience. Users are more likely to engage with content that is tailored to their needs and pref- erences. By localising content, brands can provide a personalised experience for users, which can improve user satis- faction and loyalty. For example, local- ising a virtual store to include local pricing and payment methods can make the purchasing process more conve- nient and accessible for users. Another example of a business that has improved the user experience in the metaverse through localisation is the gaming company Riot Games. It local- ised its popular game ‘League of Legends’ for diff erent regions by adapt- ing character names, dialogue, and content to suit local cultures. This has businesses can ensure their content is culturally appropriate and respectful, which can help build trust and foster positive relationships with users. This can be demonstrated through Avatar outfi ts made available and the style and build of the Avatar for customisation and personalisation. Diversity and inclusivity Localisation in the metaverse also promotes diversity and inclusivity. By creating virtual environments that are tailored to the needs of users in diff erent regions, the metaverse can break down cultural barriers and promote cross-cultural understand- ing. This is particularly important in today's globalised world, where people from diff erent backgrounds and cultures are increasingly inter- acting with each other. By adapting the metaverse to the specifi c needs and preferences of users in different regions, we can create a truly global phenomenon that has the potential to transform human interac- tion and commerce. Localisation really is crucial for the mass adoption of the metaverse and for it to realise its poten- tial as the next iteration of the internet. Whether you are a developer, a business owner, or simply a curious observer, it is important to recognise the impor- tance of localisation and work towards creating a metaverse that is accessible and appealing to everyone. Users are more likely to engage with content that is tailored to their needs and preferences | METAVERSE helped to create a more immersive experience for users and has increased engagement in the game. Cultural understanding Localising content in the metaverse is also important for cultural under- standing. Different cultures have diff erent values and beliefs, and busi- nesses need to be mindful of these diff erences when creating content for the metaverse. By localising content, Breaking barriers Helou says localisation in the metaverse promotes diversity and inclusivity18 AB LEADERS April 2023 A survey of the innovation ecosystem in the UAE The Studies in Applied Economics series is under the general direction of Professor Steve H. Hanke, co-director of The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise (hanke@jhu.edu). The views expressed in each working paper are those of the authors and not necessarily those of the institutions that the authors are affi liated with Blueprint The UAE’s drive for the next 50 years is to become a global player across different industries FEATURE | INNOVATION T he UAE has long set itself apart from other members of the Organisation of Petroleum Exporting Countries (OPEC) by successfully reducing its dependence on oil exports and diversifying its economy to focus on industries such as tourism, media, technology, and real estate. The economy’s innovation capacity expanded when businesses and properties were allowed to be 100 percent owned by non-nationals. However, the UAE must learn from its own experiences and those of other BY ABDULLAH SHARAFIarabianbusiness.com 19 | INNOVATION expats and investors. Despite all these advances, the UAE’s innovation ecosystem still faces some challenges, including the need for more legislative reform to create a more competitive landscape. This paper outlines the main chal- lenges, compares the nation’s current innovation effi ciency with that of other countries, emphasises the need for further investment in knowledge capi- tal to create a sustainable learning society, and suggests ways in which the UAE can create a culture of innovation. The path of economic diversifi cation Within just five decades, the UAE’s economy has been transformed from a collection of trading posts and a reli- ance on fishing and pearling into a bustling cosmopolitan state that is now the second-biggest Arab econ- omy after Saudi Arabia. This transfor- mation is epitomised by its luxurious hotels, skyscrapers, private villas, its designer retail stores and its vast highway infrastructure. Diversifi cation away from the oil and gas production that fuelled the UAE’s economic growth has long been at the heart of the country’s develop- ment strategy. Indeed, the non-hy- drocarbon sector now accounts for about two-thirds of GDP. Over the past decade, the nation’s economic development has been guided by Vision 2021, which was launched in 2010 with the aim of being completed by the golden jubilee. This policy document proposed legislative Future plans The UAE is preparing for a sustainable post-oil future Gabrielle Monaghan for editing my work and challenging my thesis. Introduction Innovation in the UAE was given a world stage during the six-month Dubai Expo 2020, which ran from October 2021 to March 2022, having been postponed due to the Covid-19 pandemic. The world expo, which coincided with the 50th anniversary of the UAE’s foundation, focused on innovations in line with the United Nations’ 17 sustainable development goals for 2030. The UAE’s drive for the next 50 years is to become a global player across different industries as it prepares for a sustainable post-oil future. In September, the UAE’s Vision 2021 plan – which incorporated ambi- tious targets for the state’s economy, society and government - moved closer to fruition with the launch of 50 economic initiatives aimed at making the country more competi- tive. The UAE’s Projects of the 50 programme to mark the country’s golden jubilee included goals to attract $150bn in overseas investment within nine years, as well as measures such as new visa categories for free- lancers and entrepreneurs, allowing skilled workers greater fl exibility to sponsor family members, and more time for expatriates who lose their jobs to fi nd a new role before being required to leave the country. Last year, the UAE also allowed foreigners to own businesses outright by removing the requirement for onshore companies to be majority owned by an Emirati. In 2020, it intro- duced a golden visa that allows for ten-year residency periods for skilled $150BN The overseas investment the UAE aims to attract within nine years nations to further improve its innova- tion ecosystem, such as by tackling legacy rentier institutions and laws that prevent it from transforming into a fully modern sustainable economy. Acknowledgements I thank Alan O’Neill for encouraging me to put down my thoughts on paper and thank Professor Hanke, a long- time friend with whom I have collab- orated on several projects in the UAE, for the opportunity to publish this paper. Finally, I would like to thank Next >