Abu Dhabi and Dubai are set to host the world’s first Machine Economy Free Zone (MEFZ), an ambitious initiative launched by blockchain platform peaq in partnership with Abu Dhabi-based venture studio Pulsar Group.

The MEFZ is designed to serve as a dedicated hub for the development and implementation of technologies at the intersection of artificial intelligence, robotics, and Web3. It aims to explore new models of economic collaboration between humans and machines within a decentralized framework.

The initiative will focus on accelerating the deployment of emerging technologies, supporting decentralized physical infrastructure networks (DePIN), and attracting investment in machine-driven applications. It also proposes a framework for integrating autonomous machines into value creation processes, reflecting broader trends in automation and digital innovation.

Structured around four core pillars—regulation, deployment, investment, and innovation—the MEFZ will develop and test regulatory frameworks to support the compliant tokenization and financing of autonomous machines and robots.

Physical and virtual sandboxes will serve as launchpads for entrepreneurs to develop and scale machine-based applications and smart city solutions. High-potential DePIN projects on the peaq network will be connected with institutional investors across the region.

Meanwhile, a regional innovation hub will advance DePIN R&D, foster ecosystem growth, and facilitate collaboration with key stakeholders on the demand side.

One of the first projects to be trialed within the MEFZ is a Machine Tokenization framework. This system is designed to lower the barrier to co-ownership of high-cost robots, enabling broader participation in the machine economy—a key element of peaq’s “Machine DeFi” vision.

The Free Zone will also introduce the world’s first Universal Basic Ownership (UBO) pilot, which will distribute machine-generated profits to individuals affected by automation.

Till Wendler, co-founder of peaq, described the initiative as a pivotal step toward an inclusive and decentralised future. “The Machine Economy is no longer a far-fetched dream, it is a reality quickly shaping up before our very eyes,” he said. “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.”

Echoing this sentiment, Alyazi Al Khattal, CEO of Pulsar, said: “We’re honoured to be part of peaq’s transformative journey. 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.”