First of all, Dubai is a city located in the United Arab Emirates, not a country 
Besides that, from what I recall the Emirates, Dubai in particular, have always been pretty open about cryptocurrencies in general so I'm not surprised they approved this law. Of course it's also good for the whole crypto world, having a city like Dubai recognizing cryptos as payment is a big move, probably others will follow.
Dubai opened for Bitcoin and allowed trades of luxury things like real estates via Bitcoin many years ago. It's 7 years ago, in 2017. Besides that, from what I recall the Emirates, Dubai in particular, have always been pretty open about cryptocurrencies in general so I'm not surprised they approved this law. Of course it's also good for the whole crypto world, having a city like Dubai recognizing cryptos as payment is a big move, probably others will follow.Luxury Dubai High Rise Apartments Will Be Sold for Bitcoin. 7 years later, if Dubai's local government opens bigger space for Bitcoin and its ecosystem there, it's very logical.
Middle East is a region with high friendly policy for Bitcoin and cryptocurrencies. We can see many conferences hosted in Middle East every year related to Bitcoin and cryptocurrencies. The founder of Telegram, Pavel Durov, lives there before his flight to France and was arrested days ago.