Ras Al Khaimah, one of the seven Emirates of the United Arab Emirates, has launched a new development aimed at economic diversification: the RAK Digital Assets Oasis (RAK DAO). This free zone is dedicated exclusively to digital and virtual asset companies. In doing so, the emirate aims to position itself as a forward-thinking centre for emerging technologies.
Unique Offerings for Entrepreneurs
RAK DAO is structured as a purpose-built ecosystem to support companies engaged in modern technologies like the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), and decentralized applications (DApps).
Entrepreneurs operating within this free zone will benefit from 100% ownership of their companies. Additionally, unique tax schemes and regulatory frameworks will be available. While initially focusing on non-financial activities, RAK DAO may introduce financial activities in the future, showing its commitment to innovation and regulatory compliance.
UAE as a Crypto and Web3 Attraction
This move by Ras Al Khaimah complements ongoing efforts across the UAE to create a welcoming regulatory environment for crypto and Web3 businesses. Previously, Dubai introduced a virtual assets law and established the Virtual Asset Regulatory Authority to ensure investor safety and industry standards.
Other jurisdictions within the UAE, including the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC), also offer attractive free zones for digital asset ventures. Companies like Binance, Crypto.com, and OKX have secured operational licenses in Dubai.
RAK DAO marks another step in the UAE’s broader strategy to attract digital asset and Web3 companies, bolstering the country’s standing as a hub for financial technology and innovation. This initiative opens a new avenue for entrepreneurs and industry stakeholders to explore and thrive in Web3.
The Rise of Blockchain in the UAE
The UAE is making headway in Web3 technology. Dubai is setting the stage for advanced digital experiences in retail and entertainment through its Mall of the Metaverse, a virtual venture in partnership with Decentraland announced at the World Government Summit. Furthermore, the country’s national airline, Etihad Airways, is venturing into NFTs with the release of its Mission Impossible Livery tokens, a proactive step towards employing blockchain for enhanced customer engagement.