The United Arab Emirates (UAE) is swiftly becoming a key center for blockchain and cryptocurrencies worldwide.
The creation of the RAK Digital Assets Oasis (RAK DAO) is only one of the recent actions the government has made to encourage the use of digital assets.
A Dubai Chamber of Digital Economy report says the UAE’s digital economy is expected to triple to over $140 billion by 2031. The report also predicts that the crypto industry will be a big part of this growth.
What is RAK DAO?
The first free zone in the world dedicated to businesses dealing in virtual and digital assets is RAK DAO.
It is located in Ras Al Khaimah, one of the seven emirates of the United Arab Emirates.
For businesses that deal in digital assets, RAK DAO provides a lot of benefits, such as:
- Completely foreign ownership
- 100% of earnings and capital are repatriated
- No personal or corporate income tax
- A legal structure created to encourage innovation
- A solid framework that can accommodate the growth of the digital asset sector
Why is RAK DAO important for the future of crypto in the UAE?
The UAE’s strategy to dominate the global digital asset market includes RAK DAO as the primary stage.
The free zone will give digital asset businesses a secure and regulated environment, attracting capital and talent worldwide.
Here are some of the benefits that RAK DAO can offer to the future of crypto in the UAE:
- Attracting investment and talent: RAK DAO offers appealing rules and regulations that attract people worldwide to invest and work there. This, in turn, supports the growth of the local digital asset industry and creates job opportunities.
- Encouraging innovation: RAK DAO’s focus on developing new and creative ideas in the digital asset sector creates a dynamic environment for creating innovative digital asset products and services. This positions the UAE as a significant hub for pioneering advancements in this field.
- Promoting knowledge: RAK DAO’s presence contributes to the spread of knowledge about digital assets and blockchain technology among the people of the UAE. This leads to a more informed and engaged public, which ultimately aids the industry’s growth.
The UAE’s favorable government policies and advantageous geographical position make it an attractive destination for businesses operating in the crypto sector. The establishment of the RAK Digital Assets Oasis represents a significant advancement for the country’s crypto industry, and it is anticipated to draw businesses from around the globe.