Following in the footsteps of Dubai and Abu Dhabi, Ras Al Khaimah, one of the seven emirates that make up the United Arab Emirates, has established a free trade zone for digital assets.
Dubbed the RAK Digital Assets Oasis, the area will be dedicated to fostering and advancing blockchain, metaverse, and artificial intelligence (AI)-related projects. The city’s economic plan, which aims to move away from oil and tourism, includes the new Web3 hub.
The ruler of the city, Sheikh Mohammed bin Saud bin Saqr Al Qasimi, as well as corporate executives from the UAE and Web3 company founders attended the zone’s ceremonial debut. Since March, plans have been in place for the new Web3 center, which aims to house companies exploring digital finance, non-fungible tokens (NFTs), and decentralized finance (DeFi).purses.
“Sheikh Saud stated that Ras Al Khaimah is dedicated to embracing new and emerging tech sectors and taking the lead in national efforts to strengthen the UAE economy and drive sustainable growth in the region.”
The Sheikh urged foreign businesses to open up shop in the trade zone, describing it as evidence of the city’s resolve to embrace digitization for “sustainable economic progress.” Dr. Sameer Al Ansari, the CEO of RAK Digital Assets Oasis, revealed that in order to encourage investment in the area, the free trade zone will depend on grants, tax breaks, and technical and regulatory assistance.
A clear legal framework for the ecosystem, business development help, a blockchain pool for Web3 enterprises, and rent subsidies are among the other benefits. On the other hand, With an eye on increasing its contribution to the GDP of the United Arab Emirates and creating jobs for its citizens, Ras Al Khaimah plans to capitalize on the advantages of making the shift to digitization.
“We felt Ras Al Khaimah could and should benefit from being a first adopter, as global trends and data point to the incredible opportunity digital assets offer,” Sheikh Saud added.
At the moment, Ras Al Khaimah is subordinated to Dubai and Abu Dhabi because of their vast knowledge of running free trade zones for digital assets. Driven by a new $2 billion effort, the Abu Dhabi Global Market (ADGM) already hosts hundreds of Web3 startups in the region, and Dubai is home to major international exchanges.
The UAE overtakes Middle Eastern countries
Thanks to several government-backed projects to investigate novel applications for the technology, the United Arab Emirates has become the world’s centre for blockchain.
The UAE’s Minister of State for Foreign Trade, Thani Al-Zeyoudi, revealed that the nation will be implementing legislation with a national vision, despite the fact that specific emirates, such as Dubai, have implemented their own unique policies for digital currencies.
With regard to AI, the UAE and Saudi Arabia are in a two-horse race after NVIDIA’s (NASDAQ: NVDA) most recent series of AI processors was ordered in bulk. Despite the significant infrastructural investment, concerns exist that the UAE may exploit its AI initiative to violate human rights.