UAE emirate established a new free zone to support digital assets, Web3, and AI

By: Magana Abdul

UAE emirate established a new free zone to support digital assets, Web3, and AI

October 19, 2023 2:53 PM

In an effort to diversify its income away from conventional avenues like tourism, the emirate of Ras Al Khaimah, famed for its rich cultural treasures, is turning to the digital assets industry.


The new RAK Digital Assets Oasis (RAK DAO) was officially opened on October 19 by Ras Al Khaimah's ruler, Sheikh Mohammed bin Saud bin Saqr Al Qasimi. This economic free zone is intended to provide assistance to businesses working in the fields of digital and virtual assets, blockchain, Web3, and artificial intelligence (AI).


Digital and virtual asset service providers in emerging technologies like the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens, decentralized autonomous organizations (DAOs), decentralized applications, and other Web3-related businesses will be the focus of the free zone, as previously disclosed by mainstream media.


RAK DAO and its ecosystem partners will also administer grant programs and offer expert assistance in numerous technological, promotional, and company expansion-related domains.


"When we set out on this... journey, our goal was to build a hub where digital assets would flourish, innovation would thrive, and ground-breaking ideas could finally come to light," Sheikh Saud stated in his opening remarks. We hoped that by laying the groundwork for its future success, we could help it flourish. Then he elaborated:


"We believed Ras Al Khaimah could and should gain from being a first adopter after observing that worldwide trends and data point to the enormous possibilities that digital assets provide."


Maryam Buti Al Suwaidi, head of the Securities and Commodities Authority, and Sameer Al Ansari, head of the RAK Digital Asset Organization, signed an MOU.


In an effort to diversify its income away from conventional avenues like tourism, the emirate of Ras Al Khaimah, famed for its rich cultural treasures, is turning to the digital assets industry. However, the new free zone is competing with Abu Dhabi and Dubai, two other prominent technological hubs, both of which are luring worldwide crypto firms.


In addition to the Abu Dhabi Global Market, the Dubai Multi Commodities Centre, and the Dubai International Financial Centre, the United Arab Emirates now has the Ras Al Khaimah Digital Assets Operating Company (RAK DAO) as another Web3-friendly free zone.


According to the Emirates News Agency, in March of 2023, Sheikh Saud enacted Law No. 2 of 2023, which decrees the foundation of RAK DAO as part of its economic diversification initiatives and tries to attract global companies. The Act provides the free zone with the autonomy it needs to serve as a dedicated, innovation-encouraging free zone for the virtual assets industry.


The HBAR Foundation, the local bank Rakbank, and the Romanian AI firm Humans.ai are just a few of the recent additions to RAK DAO's growing list of partners.