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 center for emerging technologies.
Unique Offers for Entrepreneurs
RAK DAO is structured as a purpose-built ecosystem to support companies dealing with modern technologies such as the metaverse, blockchain, utility tokens, virtual asset wallets, non-fungible tokens (NFT), decentralized autonomous organizations ( DAO) and decentralized applications (DApps).
Entrepreneurs operating in this free zone will benefit from 100% ownership of their companies. In addition, unique tax systems and regulatory frameworks will be available. While initially focusing on non-financial activities, RAK DAO may introduce financial activities in the future, demonstrating its commitment to innovation and regulatory compliance.
United Arab Emirates as a Crypto and Web3 attraction
This move by Ras Al Khaimah complements ongoing efforts in the UAE to create a welcoming regulatory environment for crypto and Web3 businesses. Previously, Dubai introduced a virtual assets law and established the Virtual Assets 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 Center (DIFC), also offer attractive free zones for digital asset businesses. Companies like BinanceCrypto.com and OKX have secured licenses to operate in Dubai.
RAK DAO marks another step in the UAE’s broader strategy to attract digital assets and Web3 companies, strengthening the country’s position as a financial technology and innovation hub. This initiative opens a new avenue for entrepreneurs and industry stakeholders to explore and thrive on Web3.
The rise of Blockchain in the UAE
UAE makes progress in Web3 technology. Dubai is setting the stage for advanced digital retail and entertainment experiences through Mall of the Metaverse, a virtual venture in partnership with Decentraland announced at the World Government Summit. In addition, the country’s national airline, Etihad Airways, is dabbling in NFTs with the launch of Mission Impossible Livery coupons, a proactive step towards using blockchain for improved customer engagement.