The United Arab Emirates has announced the launch of the world’s first Machine Economy Free Zone (MEFZ), setting a new global benchmark for AI, robotics, and blockchain integration.
The initiative is led by PEAQ, a blockchain platform built for the Machine Economy, in partnership with Pulsar Group, an Emirati venture builder focused on emerging technologies.
Located across Abu Dhabi and Dubai, the MEFZ provides a dedicated regulatory and testing environment for next-generation systems, including decentralized physical infrastructure networks (DePINs), autonomous robots, and smart city applications.
One of the zone’s key innovations is Machine Tokenization, a framework that allows individuals to co-own high-cost machines through blockchain-based tokens. This enables public investment in robots used for delivery, mobility, logistics, and urban infrastructure.
The MEFZ will also launch a pilot for Universal Basic Ownership (UBO) — a model designed to share machine-generated income directly with citizens impacted by automation.
PEAQ and Pulsar Group are advancing the MEFZ through four core pillars:
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Regulation: Legal frameworks for tokenizing and investing in autonomous machines.
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Deployment: Testbeds for real-world applications and smart city tech.
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Investment: Linking DePIN projects with institutional and visionary investors.
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Innovation Hub: A center for R&D in decentralized infrastructure systems.
“The Machine Economy is no longer a far-fetched dream, it is a reality quickly shaping up before our very eyes. 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.”
— Till Wendler, co-founder of PEAQ
This announcement follows Machine Economy Days hosted in Abu Dhabi and Dubai, which featured live showcases from DePIN innovators and drew attendance from dignitaries including Sheikh Zayed bin Suroor Al Nahyan and representatives from the Ministry of Economy, Abu Dhabi Department of Municipalities, Careem, and Microsoft.
“We’re honored 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 decentralized, 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.”
— Alyazi Al Khattal, CEO of Pulsar.
With its new headquarters now being established in the UAE, PEAQ reaffirms the country’s position as a global leader in tech-driven innovation.
As intelligent automation accelerates, the MEFZ provides a scalable blueprint for inclusive, machine-powered economic growth.
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