The United Arab Emirates has unveiled a major technological milestone with the launch of the world’s first Machine Economy Free Zone (MEFZ) — a bold initiative that merges AI, robotics, and blockchain to drive innovation.
The project is powered by PEAQ, a purpose-built blockchain platform for the Machine Economy, in alliance with Pulsar Group, a UAE-based venture builder specialized in breakthrough technologies.
Strategically located across Abu Dhabi and Dubai, the MEFZ is designed as a specialized hub offering regulatory flexibility and test environments for pioneering systems like DePINs (Decentralized Physical Infrastructure Networks), autonomous machinery, and next-gen smart city technologies.
A central highlight of the zone is the Machine Tokenization protocol — a revolutionary model that enables fractional ownership of expensive machines using blockchain tokens. Through this model, individuals can invest in delivery robots, mobility solutions, logistics bots, and infrastructure-related machines.
In addition, MEFZ will pilot a new economic approach called Universal Basic Ownership (UBO) — aimed at distributing a share of machine-generated income to people whose jobs or roles may be affected by increasing automation.
PEAQ and Pulsar Group have structured the MEFZ development around four foundational areas:
Regulation: Legal models enabling secure investment in machine assets via tokenization.
Deployment: Live-use test sites for robotics and AI-driven smart city deployments.
Investment: Access for investors to support DePIN-based initiatives and infrastructure projects.
Innovation Hub: A tech cluster for R&D, fostering decentralized infrastructure innovation.
“The Machine Economy is not a concept of the distant future anymore — it’s becoming tangible now. PEAQ ensures it benefits everyone equally. The UAE, known for its forward-thinking governance, is the perfect place to bring this to life and inspire the world.”
— Till Wendler, Co-founder of PEAQ
This groundbreaking announcement comes after Machine Economy Days were held in both Abu Dhabi and Dubai, showcasing real-world DePIN applications. These events saw participation from high-level stakeholders such as Sheikh Zayed bin Suroor Al Nahyan and representatives from the Ministry of Economy, Abu Dhabi Department of Municipalities, Careem, and Microsoft.
“We’re excited to partner with PEAQ on this game-changing initiative. Their platform is revolutionizing the intersection of physical infrastructure and decentralized digital systems. With UAE as the launchpad, we are witnessing the birth of a new machine-driven economy.”
— Alyazi Al Khattal, CEO of Pulsar
With PEAQ’s new headquarters being established in the UAE, the country further solidifies its role as a global epicenter of innovation in intelligent systems and digital economies.
As the rise of automation continues, MEFZ presents a scalable and inclusive model for integrating machines into everyday economic life.
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