As the United Arab Emirates (UAE) strengthens its position as a magnet for burgeoning blockchain industry players, the government of Ras Al Khaimah launches a new free zone tailored for digital and virtual asset firms is scheduled to be announced.
Known as the RAK Digital Assets Oasis, this bespoke zone will serve as a dedicated, innovation-oriented space for unregulated activity in the virtual asset space. The zone will begin accepting applications from the second quarter of 2023, according to an official government statement on Monday.
“We are building the free zone of the future for the businesses of the future. As the world’s first free zone dedicated to digital and virtual asset companies, we look forward to supporting the ambitions of entrepreneurs around the world.” .”
RAK Digital Assets Oasis provides digital and virtual asset services within novel and emerging sectors such as metaverse, blockchain, utility tokens, virtual asset wallets, non-fungible tokens, decentralized autonomous organizations, decentralized applications and other Web3 providers only. Ventures related to.
RAK Digital Assets Oasis provides companies with a range of support, including a hiring framework that drives innovation, expert advisory services, flexible workspaces, accelerators, incubators, sandboxes, and access to funding.
The country actively offers incentives to attract digital companies to establish operations in the country. In July, Minister of State for Foreign Trade Dr Thani Al Zeyoudi announced that the first phase of the NextGenFDI initiative aims to attract 300 digital companies within six to 12 months.
UAE as an alliance of free zones
A free zone, also known as a free trade zone, is a designated economic zone that provides entrepreneurs with full ownership of their enterprise and provides access to favorable tax regimes.
To expand its non-oil economy, the United Arab Emirates has devoted considerable resources towards infrastructure development and policy review aimed at enhancing its appeal to businesses and entrepreneurs.
According to a recent report by the Dubai Digital Economy Chamber, the UAE’s digital economy is projected to surge from a current value of around $38 billion to more than $140 billion by 2031.
Digital Assets Industry in Dubai
Last March, Dubai Dubai Virtual Assets Regulation Act, aims to establish a state-of-the-art legal framework that protects investors and establishes global standards of governance within the crypto-asset industry. This law aims to facilitate the responsible expansion of the sector within the Emirates.
Additionally, the Virtual Assets Regulatory Authority (Vara) was born. It is an independent body tasked with regulating the industry throughout Dubai’s special development and free zones, with the exception of the Dubai International Financial Centre.
However, the central bank of the United Arab Emirates, which is based in the Emirate of Abu Dhabi, does not recognize cryptocurrencies as legal tender.
