Dubai and peaq Forge Path to Regulate the Machine Economy

Dubai’s Virtual Assets Regulatory Authority (VARA) and peaq, a leader in the Machine Economy computer systems, signed a landmark Memorandum of Understanding (MoU) at GITEX GLOBAL 2025.

The agreement aims to pioneer the regulation of on-chain robotics, Decentralized Physical Infrastructure Networks (DePIN), and tokenized machines within the UAE.

This collaboration seeks to establish Dubai as a global front-runner in the emerging economic model where intelligent machines operate autonomously, conducting transactions and delivering services without human input.

The MoU supports the growth of the Machine Economy Free Zone (MEFZ) by setting regulatory guidelines, sharing critical economic data, and fostering education in this new sector.

Shaping the Future of Autonomous Machines in Dubai

The partnership focuses on four major areas: recognizing and supporting the MEFZ as a regulatory sandbox, offering regulatory guidance to projects applying for VARA licenses, jointly developing talent through education, and sharing anonymized data for research and sustainable economic development.

peaq will support VARA by offering insights, data, and recommendations to help shape effective regulations that encourage innovation while addressing industry challenges.

Leonard Dorlöchter, co-founder of peaq, highlighted Dubai’s unique position in the global innovation landscape: “Dubai’s strides in Web3 and robotics place it perfectly to lead globally in machine tokenization.

This MoU lays the foundation for future collaborations and sets a benchmark for others to follow.”

Meanwhile, VARA’s CEO Mathew White emphasized the strategic role of the MoU in accelerating Dubai’s digital economy ambitions: “This collaboration marries innovation with responsible oversight, establishing Dubai as the leading hub for the safe and sustainable growth of tokenized machines, on-chain robotics, and DePIN.”

DePIN’s Explosive Growth and Market Potential

DePIN, a critical technology underpinning the Machine Economy, already boasts a market cap of over $50 billion in 2024.

Industry forecasts by crypto data platform Messari project its value could skyrocket to $3.5 trillion by 2028.

This growth is fueled by increased adoption of decentralized physical networks and technological advancements in blockchain, AI, and IoT.

The rise of tokenized real-world assets (RWA) powered by continuous, autonomous machine operations signifies a paradigm shift in asset classes.

peaq’s recent initiatives, including launching the world’s first tokenized robo-farm in Hong Kong and releasing a Web3 and Robotics software development kit, exemplify the practical applications driving this economy.

By formalizing regulatory frameworks with VARA, Dubai strengthens its position as the premier destination for innovations in robotics, DePIN, and tokenized machines—ushering a new era of machine-operated economic ecosystems.