• The UAE is creating a new free zone, the RAK Digital Assets Oasis, tailored specifically for digital and virtual asset companies.
• The free zone will provide access to services such as adoption frameworks, expert advisory services, flexible workspaces, accelerators and incubators.
• This initiative is part of the NextGenFDI initiative which seeks to draw 300 digital firms within six to twelve months.
UAE Establishes Special Free Zone For Digital And Virtual Asset Companies
The Emirate of Ras Al Khaimah in the United Arab Emirates (UAE) has announced plans to establish a specialized economic ‚free zone‘ for companies dealing with digital and virtual assets. Known as the RAK Digital Assets Oasis, this dedicated zone will serve as an innovation-oriented space for unregulated activities in the virtual assets sphere. It is slated to begin accepting applications from Q2 2023.
Services Offered By RAK Digital Assets Oasis
The RAK Digital Assets Oasis will exclusively cater to providers of digital and virtual asset services within novel and emerging sectors such as the metaverse, blockchain, utility tokens, virtual asset wallets, non-fungible tokens, decentralized autonomous organizations (DAO), decentralized applications (DApp), and other Web3-related ventures. It will provide a range of support to firms including adoption frameworks that encourage innovation; expert advisory services; flexible workspaces; accelerators; incubators; sandboxes; and access to funding.
The UAE government is proactively offering incentives to entice digital firms to establish operations within its borders. In July 2020, Dr. Thani Al Zeyoudi, the Minister of State for Foreign Trade announced that the NextGenFDI initiative’s first phase seeks to draw 300 digital firms within six to twelve months.
What Is A Free Zone?
A free zone or a free-trade zone is an economic district that offers entrepreneurs complete ownership of their enterprises as well as access to favourable tax regimes. These zones are popular among international businesses due their low cost operations and exemptions from customs duties on goods imported into or exported out of them.
With initiatives such as these dedicated free zones for digital asset companies and favourable policies like those offered through NextGenFDI initiative by UAE government, it’s no wonder that many international businesses are setting up shop in this region which promises lucrative opportunities while providing numerous incentives at minimal costs