Ras Al Khaimah, renowned for its extensive cultural resources, is looking to the digital assets market to diversify its income away from more established channels like tourism. With this in mind, United Arab Emirates (UAE) opened a new free zone for digital assets, Web3, and AI.

On October 19, Sheikh Mohammed bin Saud bin Saqr Al Qasimi, the ruler of Ras Al Khaimah, officially opened the new RAK Digital Assets Oasis (RAK DAO), an economic free zone devoted to assisting businesses working in digital and virtual assets, blockchain, Web3, and artificial intelligence (AI).

More On the Free Zone for Digital Assets

United Arab Emirates (UAE) opened a new free zone for digital assets, Web3, and AI.

The free zone will be devoted to digital and virtual asset service providers in cutting-edge technologies like the metaverse, blockchain, utility tokens, virtual asset wallets, nonfungible tokens, decentralized autonomous organizations (DAOs), decentralized applications, and other Web3-related businesses.

RAK DAO and its ecosystem partners will also manage award programs and offer specialized assistance in various tech, marketing, and business development areas.

“When we embarked on this… journey, our vision was to create a hub where digital assets could thrive, innovation could flourish, and groundbreaking ideas could come to light,” Sheikh Saud said in his opening remarks. “We wanted to provide a platform to foster its growth and success.” He added:

“We observed that global trends and data point to the incredible opportunity digital assets offer, and we felt… that Ras Al Khaimah could and should benefit from being a first adopter.”

Additionally, CEOs of the Securities and Commodities Authority, Maryam Buti Al Suwaidi and RAK DAO Sameer Al Ansari signed a memorandum of collaboration.

Ras Al Khaimah, renowned for its extensive cultural resources, is looking to the digital assets market to diversify its income away from more established channels like tourism. However, the new free zone has entered a market where more well-known technological hubs in Abu Dhabi and Dubai are already drawing international crypto firms.

Web3-Friendly Free Zone For Digital Assets

United Arab Emirates (UAE) opened a new free zone for digital assets, Web3, and AI.

RAK DAO joins the group of Web3-friendly free zone for digital assets in the United Arab Emirates, including the Abu Dhabi Global Market, Dubai Multi Commodities Center, and Dubai International Financial Centre. In these places, business owners have complete control over their companies and are subject to their own tax laws and regulatory frameworks, except the country’s criminal code.

Sheikh Saud published Law No. 2 of 2023, according to a March report by the Emirates News Agency, to diversify his economy and entice foreign investors. The law gives the free zone autonomy in finance, administration, and lawmaking, enabling it to serve as a specially designed free zone that fosters innovation for the virtual assets industry.

RAK DAO has since added several partners to help grow its ecosystem, including the HBAR Foundation, local bank Rakbank and Romanian AI firm Humans.ai.

In conclusion, the launch of a new free zone in the UAE dedicated to digital assets, Web3, and AI signifies the Emirate’s commitment to fostering innovation and technology. This development is poised to attract businesses and entrepreneurs in these cutting-edge fields, positioning the UAE as a hub for emerging technologies and digital innovation. It reflects the country’s forward-thinking approach to economic diversification and its readiness to embrace the future of technology.