A New Frontier for Robotics and Tokenization in Dubai
This MoU is tied to Peaq’s Machine Economy Free Zone, a controlled environment designed to test the real-world application of robots and AI in decentralized networks. Peaq co-founder Max Thake emphasized the partnership’s focus on compliance and innovation. “This agreement represents a significant step in creating the Machine Economy in a compliant manner, allowing people to participate, build, and benefit from an entirely new economic sector,” he said.
Peaq has developed a layer-1 blockchain specifically designed for the machine economy, where devices, robots, and AI can own assets, trade data, and generate income. This model will enable machines to participate in the economy, rather than simply being tools.
VARA’s Role in Shaping Dubai’s Digital Asset Future
The partnership with VARA, Dubai’s official authority for regulating virtual currencies and digital assets, highlights Dubai’s commitment to becoming a global hub for digital asset regulation. VARA was established to manage the commercial licensing and compliance framework for virtual asset businesses within the UAE. The collaboration with Peaq aims to help projects meet VARA’s licensing requirements and contribute to the development of the UAE’s growing crypto ecosystem.
Both parties will engage in joint employee training and data sharing to develop regulatory and research papers, refining the structure for tokenizing physical infrastructure, such as robots and machines.
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Dubai’s Growing Influence in Digital Assets and Robotics
The Machine Economy Free Zone was launched in July 2025 as part of Dubai’s broader initiative to foster the development of cutting-edge technologies such as artificial intelligence, robotics, tokenized assets, and more, all within a regulatory framework. Peaq’s initiative offers businesses and innovators a compliant space to test and launch blockchain-powered solutions using the Peaq Testnet.
Dubai’s increasing focus on the transformation of digital assets and the tokenization of real-world assets has become evident. In September 2025, the Dubai Authority entered into a strategic partnership with DMCC (Dubai Multi Commodities Centre) for tokenized commodities. Additionally, VARA has been consistently updating its rulebook for virtual asset service providers (VASPs). New rules related to RWA (Real World Asset) issuance became effective in May 2025, enabling tokenized assets to list and issue on secondary markets.
UAE’s Push to Lead the Global Crypto Space
Since its formation in March 2022, VARA has played a crucial role in the UAE’s efforts to position itself as the center for global crypto and blockchain innovation. The region has seen a surge of interest from the crypto and fintech sectors, thanks to its regulatory clarity and business-friendly environment. Trends indicate that Dubai is on track to become a global hub for digital finance and technology. In fact, it’s projected that by 2025, 9,800 high-net-worth crypto investors will relocate to Dubai, a sign of confidence in the region’s regulatory framework.
The partnership between SCA (UAE Securities and Commodities Authority) and Bahrain’s Fintech Bay further underscores the UAE’s intention to create a unified regulatory framework for digital assets and blockchain technologies.
Future-Talk: Dubai as a Global Digital Assets Hub
With the creation of the Machine Economy Free Zone and Peaq’s partnership with VARA, Dubai is positioning itself as the global standard for the safe and sustainable growth of emerging technologies, including robotics and tokenized machines. Matthew White, CEO of VARA, stated that Dubai’s aim is to become the global leader in the safe development of this next-generation asset class.
As Dubai’s digital asset and blockchain ambitions continue to grow, Peaq’s partnership with VARA will be instrumental in shaping the future of onchain robotics and the machine economy. This partnership reinforces Dubai’s ongoing commitment to being at the forefront of the digital economy.
