UAE Law and Practice Contributed by: Alain Zahlan de Cayetti and Anna Sedova, De Cayetti Law
has supported more than 50 gaming companies and built a broader esports business ecosystem. Large infrastructure investments are also emerging. For example, plans have been announced to develop a USD280 million esports island and gaming resort in Abu Dhabi designed to host international tourna - ments and esports training facilities. Finally, the UAE is also investing in hybrid sports combining physical and digital competition. The country will host the Games of the Future, a “phygital” tournament blending esports and traditional sport disciplines with approximately USD5 million in total prize money. To conclude on this point, the UAE esports audience is expanding rapidly, with projections of around 1.5 million viewers by 2025 and increasing digital stream - ing consumption through platforms such as Twitch. The NFT market in the UAE has developed as part of the country’s broader strategy to promote digital assets, blockchain technology and Web3 innovation. The use and trading of virtual assets are regulated under the Federal Decree-Law No 14 of 2023 and the Virtual Asset Regulation Law (VAL), issued on 28 Feb - ruary 2022 and effective from 11 March 2022. As of 31 August 2023, the UAE applies a unified regulatory framework governing cryptocurrency activities. Companies operating in Abu Dhabi must obtain a licence from the Abu Dhabi Global Market (ADGM) under its Financial Services Regulatory Authority (FSRA) framework. Entities operating in Dubai (exclud - ing the Dubai International Financial Centre – DIFC) must be licensed by the Virtual Assets Regulatory Authority (VARA). The DIFC remains separately regu - lated by the Dubai Financial Services Authority (DFSA), which has its own regime for investment tokens and related digital assets. Within the sports sector, NFTs have mainly been used to create digital collectibles and fan experi - ences. Clubs, event organisers and sponsors have experimented with NFTs linked to memorable sport - 10. NFTs, AI and the Metaverse 10.1 Non-Fungible Tokens (NFTs)
ing moments, athlete images or exclusive digital mer - chandise. For example, McLaren Racing launched the “Race Rewind” NFT collectible series with crypto company OKX. These NFTs allow fans to collect digital artefacts commemorating each race and may unlock prizes such as VIP race experiences or team visits. The Alpine F1 Team partnered with Binance to launch the ALPINE fan token, allowing supporters to obtain NFTs, vote in fan polls and access exclusive brand experiences. Digital activations at the Abu Dhabi Grand Prix have included metaverse platforms and fan-zone experi - ences where visitors could purchase digital assets and NFTs linked to the event. 10.2 AI The UAE currently does not have a single compre - hensive AI legislation/regulation, but AI governance is built around national strategies, ethical frameworks and sector-specific laws (especially data protection). The main instruments relevant to sports include: • the UAE Strategy for Artificial Intelligence 2031; • the UAE Charter for the Development and Use of Artificial Intelligence (2024); • the data protection legislation (see 5.8 Data Pro- tection ); and • the Abu Dhabi Law No 3 of 2024 establishing the Artificial Intelligence and Advanced Technology Council (AIATC), which oversees AI strategy and investment in advanced technologies. Sports organisations, teams and sponsors increas - ingly use AI in several areas, including athlete per - formance and injury prevention, match analysis and officiating, fan engagement and media, and sports management and operations, where the UAE has launched digital platforms integrating AI into sports management, event organisation and athlete develop - ment systems. 10.3 The Metaverse The metaverse is still emerging in the UAE and is being promoted as part of the UAE’s broader digital-econo - my strategy, including the Dubai Metaverse Strategy. However, the metaverse is already used for virtual sports experiences, gaming ecosystems, fan engage -
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