How do you get as many crypto companies as possible in your country? Have as little friction as possible. Ras Al Khaimah, one of the seven emirates that make up the UAE, is launching a free trade zone for crypto companies.
This is part of a larger strategy to make the United Arab Emirates (UAE) a major player in the digital landscape. The initiative would be the world’s first free zone for digital and virtual asset companies and was announced at Blockchain Life 2023 in Dubai.
What are Free Trade Zones?
Free trade zones in the UAE are designated areas where businesses can operate without restrictions. Think of the possibility of 100% foreign ownership, with no corporate income tax, no income tax and no taxes. It also offers streamlined procedures for starting a business, including streamlined licensing and registration processes.
The free zone in Ras Al Khaimah will be called RAK Digital Assets Oasis (RAK DAO). They describe it as “an innovation-promoting free zone created specifically for unregulated activities in the virtual asset sector.”
For companies of the future
Commenting on the new free zone, Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi, Chairman of RAK ICC and Chairman of RAK Digital Assets Oasis said:
“We are proud to strengthen the UAE’s position as a premier destination for innovation with the launch of RAK Digital Activa Oasis. We are building the free trade zone of the future for the companies of the future.”
The sheik continues:
“As the world’s first free zone dedicated exclusively to digital and virtual asset companies, we look forward to supporting the aspirations of entrepreneurs around the world with our innovative, supportive and rapidly adaptable approach and environment that enable innovation.”
Are cryptocurrency companies moving?
With the legalization of the crypto industry and basically everything related to it, Ras Al Khaimah opens the gates for crypto companies looking for a new home.
This can be very attractive for several companies because in some countries it can be difficult for a crypto company to open a bank account. And when opening a bank account, you can count on constant monitoring.
Dubai is leading the way
We wrote at the beginning of this article that the new zone is part of a larger strategy. The United Arab Emirates (UAE) wants to position itself as an attractive hub for cryptocurrency companies. This has been partially successful, currently almost all crypto entrepreneurs in this region are based in Dubai.
This is partly due to the establishment of the Dubai Multi Commodities Center Crypto Center (and simply because Dubai is a great city). The DMCC Crypto Center has been instrumental in creating a favorable ecosystem for crypto companies to operate in the UAE.
There was also talk 2 years ago that Dubai also wanted to create a free trade zone for crypto companies. The idea was to give international investors and entrepreneurs the greatest possible freedom to innovate in the region, as is happening now in Ras Al Khaimah.
Furthermore, the government has launched several initiatives to support the development of blockchain technology.
For example, the Dubai Blockchain Strategy aims to make Dubai a blockchain-powered city. Dubai must be firmly entrenched in the metaverse.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
