To create a sandbox environment which will see humans and machines co-exist, co-create value and thrive together in the Age of Abundance, peaq, the machine economy computer, and Pulsar Group, the Emirati venture studio and consultancy focused on tech and blockchain, have unveiled the Machine Economy Free Zone (MEFZ), which will be launched in Dubai and Abu Dhabi.
The announcement follows the Machine Economy Days in Abu Dhabi and Dubai, which peaq and Pulsar organised last month. The successful events saw several apps (DePINs) building on peaq showcase their applications in action and make a case for Web3 as a vital part of smart cities before a distinguished audience of government officials and business decision-makers.
The attendee list included His Highness Sheikh Zayed bin Suroor Al Nahyan as well as representatives of the Ministry of Economy, Abu Dhabi Department of Municipalities, Careem, Microsoft, and other companies and government bodies.
Four core pillars of MEFZ
Regulation
As part of the MEFZ, peaq is working on the development and testing of a range of regulatory initiatives and sandboxes, such as compliant tokenisation and investment into autonomous machines and robots.
Deployment
peaq is working with Emirati partners to set up physical and virtual sandboxes where founders can experiment with new business models and deploy apps, devices and technologies aimed at powering more advanced smart cities.
Investment
peaq is connecting top apps (DePINs) on peaq with the most visionary investment bodies and institutional partners in the region, enabling them to scale and deploy at lightning speed.
Innovation Hub
peaq is establishing a regional innovation hub focused on supporting DePIN (decentralised physical infrastructure) apps in research and development, deployment, and connection with ‘demand side’ organisations.
Testing MEFZ
Among the first initiatives to be tested in the MEFZ is a framework for Machine Tokenisation which aims to lower the barrier to entry for individuals to invest in more expensive robots and machines. A key element in peaq’s ‘Machine DeFi’ vision for a decentralized financial system for robots, vehicles, and machines.
The MEFZ will also include the pilot of ‘Universal Basic Ownership (UBO)’ – an income stream directly tied to machine-generated profits, with no intermediaries. The goal of the UBO pilot will be to use the MEFZ to test how abundance generated by robots can be directly distributed to individuals and communities affected by job automation. peaq will also make the Emirates the centre of its operations, setting up its new headquarters there.
“We’re honoured to be part of peaq’s transformative journey. peaq is redefining what’s possible for the future of the Machine Economy. By boldly bridging the physical and digital worlds through a decentralised, scalable, and sustainable Layer-1 blockchain, peaq is laying the foundation for a new era of real-world connectivity and autonomy. This is more than technology—it’s a movement, and we’re proud to help shape what comes next,” said Alyazi Al Khattal, CEO of Pulsar.
Cementing the UAE’s position in the world of blockchain innovation
The Machine Economy Free Zone sets the foundation for a Machine Economy in the United Arab Emirates, boosting the nation’s smart city and blockchain innovation through community-powered apps, networks and machines, and paves the way to wider global adoption of this vision at a nation-state level.
The Machine Economy is on the proverbial doorstep, driven by the rise of AI and robotics, also known as Physical AI. A world where machines create value autonomously with little to no human interference no longer seems like a utopian dream. Without Web3, though, this transformation can worsen the existing economic situation, with innovation and its benefits concentrated in the hands of a few companies. With peaq, these are the early days of a future where communities co-own, earn from, and govern the machinery the world runs on.
These initiatives are the first on a long list that will create the environment for founders to build, deploy, create revenue, network, raise funds, go to market and scale fast and with full regulatory compliance.
“The Machine Economy is no longer a far-fetched dream, it is a reality quickly shaping up before our very eyes,” says Till Wendler, co-founder of peaq. “peaq makes this transformation work for everyone — and the Emirates, as one of the most innovative nations in the world, is the perfect place to pilot this vision, setting a template and example for the rest of the world.”
