UAE’s Vuz secures $20m in funding to expand into new markets

Vuz, a UAE-based social app that allows users to stream and experience immersive realism in extended reality (XR) and enjoy metaverse digital experiences, has secured $20 million in a series B funding round that will pave the way to expand in new markets and boost growth.

The company will also use the funding to develop new products, hasten the growth of its recurring subscription revenue and hire new staff, data platform Magnitt reported on Friday, quoting Vuz.

The funding was led by Caruso Ventures, the Vision Ventures VC Fund, e& capital, the Dubai Future District Fund, SRMG and the Webit Investment Network.

Elbert Capital, Yasta Partners, Faith Capital, Panthera Capital and seven of the existing previous investors also participated in the funding round, the company said.

“Our plans for the future are 10 times stronger than what we have been building for the past six years,” Vuz founder Khaled Zaatarah said.

“We have built the base and now we are ready for sustainable scalability and growth at a scale-up stage.”

The XR market size is expected to reach $125.2 billion by 2026, from $33bn in 2021, according to a research report by Markets and Markets.

The global metaverse industry, which was valued at $47.69bn in 2020, is projected to grow at a compound annual rate of 43.3 per cent to $828.95bn in 2028, according to Emergen Research.

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Watch: Dubai holds world's first metaverse assembly

The metaverse is the emerging digital space in which people, represented by avatars or three-dimensional representations of themselves, can interact in virtual worlds.

The company's “vision is to bring people together and connect the world by providing authentic immersive experiences while removing the constraints of travel, time and access to billions of people around the world”, Vuz, which was previously known as 360Vuz, said.

The start-up is planning to build on its current iOS and Android social mobile applications with new features, as well as launch its web and smart TV platforms.

It will also further scale up operations at its office in Los Angeles to boost growth.

“We are excited about investing in a tech company like Vuz that supports the creation of virtual content, as well as enables futuristic immersive experiences,” said Kushal Shah, head of venture capital at e& capital, the new investment unit of e&, formerly known as the Etisalat Group.

“This is in line with our commitment to collaborate with visionary tech businesses that we believe will contribute to building a better and brighter digital future.”

Venture capital funding for start-ups in the Mena region rose by 20 per cent annually to more than $2.3bn in the first three quarters of 2022, according to a recent report by Magnitt.

The UAE has been leading the venture capital ecosystem in the Mena region, raising more than $840m in the first nine months of the year.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

David Haye record

Total fights: 32
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Losses: 4

UAE’s Vuz secures $20m in funding to expand into new markets

The series B round was led by investors such as Caruso Ventures, Vision Ventures VC Fund and e& capital

Watch: Dubai holds world's first metaverse assembly

Ten tax points to be aware of in 2026

David Haye record