UAE Inaugurated a Blockchain Oasis for Visionary Companies

Potential Tech Heaven for Emerging Companies

The RAK Digital Asset Oasis offers several benefits to businesses working with emerging technologies such as the blockchain, non-fungible tokens, metaverse, virtual asset wallets, and other Web3 concepts.

The entrepreneurs will be able to retain full ownership of their companies and will benefit from special regulation and separate tax schemes, profit repatriation and no individual income tax. More importantly, grant programs will become available to fund research and development.

On the financial side of the project, several partners have already been recruited, such as the Rakbank and the HBAR Foundation. Additionally, businesses that plan to put down roots or migrate some of their operations to Ras Al Khaimah can expect to receive support in the form of marketing strategies and guidance for business development. But equally crucial is the technological assistance offered to startups or established companies willing to migrate to the free zone. 

New Step to Retain an Edge Over Its Neighbors

The UAE is not the first country from the region to turn to technology as a means to broaden its economic prospects. However, it might have an advantage over its neighbors, considering its bigger cities  Dubai and Abu Dhabi have already attracted several crypto firms. Dubai was among the first to introduce a virtual assets law and protect investors by establishing the Virtual Asset Regulatory Authority.

A few global companies responded to the positive legal landscape by acquiring licenses in 2022 to operate in Dubai. The most prominent brands opening shops in Dubai were Binance, OKX, and Crypto.com.

The free zone project in the UEA started to take shape in March after Sheikh Saud decreed the establishment of RAK DAO. The legislation offers legislative and financial freedom to the free zone. The goal was to create a zone for enabling innovation in the metaverse, virtual asset wallets, NFTs, and other Web3-related companies to thrive and in turn diversify the UAE economy.

The RAK DAO is not the first free zone in the country. More than 40 multidisciplinary free zones offer foreign investors full ownership of companies while working in a favorable business climate.