Ras Al Khaimah, one of the seven Emirates of the United Arab Emirates (UAE), has unveiled its latest initiative to diversify its economy by launching the RAK Digital Assets Oasis (RAK DAO), a dedicated free zone for digital and virtual asset companies.
In a move to attract global crypto players, the emirate is positioning itself as a forward-thinking hub for emerging technologies.
A purpose-built free zone for digital assets
RAK DAO is poised to become the world’s first free zone solely dedicated to digital and virtual asset companies, creating a purpose-built ecosystem for entrepreneurs from around the globe.
This free zone is designed to support companies involved in cutting-edge technologies, including the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), decentralized applications (DApps), and other Web3-related businesses.
Entrepreneurs within the free zone will have 100% ownership of their businesses and enjoy unique tax schemes and regulatory frameworks. While RAK DAO is expected to begin with non-financial activities, it may introduce financial activities at a later stage, underlining the emirate’s commitment to innovation and regulatory compliance.
UAE’s attraction for crypto and Web3 firms
The UAE has been actively courting crypto and blockchain firms with a progressive regulatory environment.
Dubai introduced a virtual assets law and the Virtual Asset Regulatory Authority to safeguard investors and establish industry standards. Additionally, the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC) have their own financial regulators, offering attractive free zones for digital asset businesses. The Dubai Virtual Assets Regulatory Authority went ahead and even launched headquarters in The Sandbox in May 2022.
Several crypto firms have since secured operational licenses to operate in Dubai. Some of the companies that have acquired licenses to operate in Dubai include Binance, which was the first to acquire an MVP license in Dubai, Crypto.com, and OKX.
Ras Al Khaimah’s RAK DAO complements the more than 40 multidisciplinary free zones in the UAE, further positioning the country as a destination of choice for crypto, blockchain, and Web3 enterprises.
Applications for RAK DAO are open, offering entrepreneurs and digital asset companies a new opportunity to thrive in this burgeoning industry. This initiative signifies the UAE’s commitment to fostering innovation and embracing the future of finance and technology.
