World’s First Machine Economy Free Zone Launches in UAE
Abu Dhabi and Dubai are preparing to host the world’s first Machine Economy Free Zone (MEFZ), marking a significant milestone for AI, blockchain, and smart cities. Launched by peaq, a blockchain platform, and Pulsar Group, a UAE-based venture studio, the initiative aims to redefine how machines and humans interact in a decentralised economy.
The MEFZ will serve as a proving ground for co-creation between humans and autonomous machines. Moreover, the project will support the fast-tracking of advanced technologies and foster investment through decentralised physical infrastructure networks (DePIN). By leveraging the UAE’s reputation for innovation, the MEFZ could position the region as a global leader in next-gen machine economies.
Core Pillars Drive Innovation and Growth
The MEFZ is structured around four main pillars: regulation, deployment, investment, and innovation. These foundational areas are designed to ensure the zone remains compliant, scalable, and forward-looking. For instance, the regulatory framework will focus on tokenisation and legal investment in autonomous technologies.
Deployment efforts will include both virtual and physical sandboxes, enabling founders to test machine-driven apps in real-world environments. At the same time, top-performing DePIN applications will gain direct access to institutional investors. To drive continued progress, a dedicated hub will support R&D and collaboration with local demand-side enterprises.
As one of the first use cases, the MEFZ plans to introduce a Machine Tokenization framework. This system will allow individuals to co-own expensive robots, aligning with peaq’s broader Machine DeFi vision. In addition, the zone will host the world’s first Universal Basic Ownership (UBO) pilot, enabling people impacted by automation to share in machine-generated revenues.
Leaders See UAE as Ideal Launchpad
Till Wendler, co-founder of peaq, emphasized the global importance of the initiative. “The Machine Economy is no longer a far-fetched dream, it is a reality quickly shaping up before our very eyes,” he said. Wendler added that the UAE’s innovative environment makes it the ideal location to pilot this vision.
Alyazi Al Khattal, CEO of Pulsar, echoed the sentiment. “This is more than technology it’s a movement, and we’re proud to help shape what comes next,” she said. Al Khattal noted that peaq’s approach to bridging the physical and digital worlds sets a powerful precedent for future smart economies.
With the MEFZ, the UAE is not only embracing futuristic ideas but actively building the infrastructure to turn them into reality.
