UAE Emirate to Launch Free Zone for Digital Asset Firms

Ras Al Khaimah, one of the seven Emirates that make up the United Arab Emirates (UAE), announced the launch of a free zone for digital asset firms.

Ras Al Khaimah, one of the seven emirates of the UAE, will soon launch a free zone for digital and virtual asset firms. The decision is part of the country’s approach to attracting global crypto members. The RAK Digital Asset Oasis (RAK DAO) will be a “purpose-built, innovation-enabling free zone for non-regulated activities in the virtual asset sector.” Free-trade zones are areas in the UAE where firms have 100% ownership of their businesses and have different regulatory and tax frameworks. Applications for joining the Oasis will open in April 2023. The decision to launch the RAK DAO was made at the Blockchain Life Conference 2023.

Finance Magnates reports Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi was voted Chairman of the RAK DAO. The Sheikh believes this move will boost the UAE’s position as a leading destination for innovative firms. He said:

We are building the free zone of the future for the companies of the future. As the world’s first free zone solely dedicated to digital and virtual asset companies, we look forward to supporting the ambitions of entrepreneurs from around the world with our progressive, supportive, and quick-to-adapt approach and our innovation-enabling environment.

The UAE has positioned itself as a hub for innovation, and the RAK DAO is in line with this. The free zone will provide digital and virtual asset firms with a globally connected environment which will allow them to develop business models for the future. 

Dr Sameer Al Ansari, CEO of RAK International Corporate Centre and CEO of Digital Assets Oasis, said:

We look forward to welcoming the world’s brightest Web3 minds with their most disruptive ideas that uncover new approaches to creating a better future. We are committed to empowering the next generation of global entrepreneurial talent to build transformative solutions and create impact while shaping the future of businesses and economies.

Ras Al Khaimah joins Dubai as another of the seven emirates to have embraced cryptocurrencies and introduced crypto regulations. Dubai’s Virtual Assets and Regulatory Authority (VARA) released new regulations for any crypto-related firms looking to set up business in the country. The regulator introduced a total ban on privacy-focused crypto projects. Last year, the regulator also introduced regulatory guidelines related to the marketing, advertising and promotion of virtual assets.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.