The Ras al-Khaimah (RAK) government, one of the UAE’s emirates, plans to create a free zone for digital-asset companies. The National News reports this.
According to the statement, RAK Digital Assets Oasis will be a hub for the unregulated activities of industry participants. Applications will begin to be accepted in the second quarter of 2023.
“We are proud that with the launch of RAK Digital Assets Oasis we strengthen the UAE’s position as a leading destination for innovation,” said Muhammed Al Kasimi, chairman of the operator of the zone RAK ICC.
According to him, the administration expects support for the initiative from entrepreneurs worldwide.
The report noted that such free zones are economic zones where participants are full owners of their enterprises and typically receive tax incentives.
The UAE government is ploughing significant resources into developing the non-oil portion of the economy. Authorities expect the digital segment, currently valued at $38 billion, to exceed $140 billion by 2031.
To support its development, regulators in the country are drawing up rules to optimise oversight of the industry. In March 2022, Dubai enacted the Virtual Assets Law and established the regulatory authority — Virtual Assets Regulatory Authority (VARA).
Also in 2021, authorities permitted trading of cryptocurrencies within the Dubai World Trade Centre Free Zone.
However, the UAE Central Bank does not recognise cryptocurrencies as legal tender.
The Ras al-Khaimah authorities noted that RAK Digital Assets Oasis is intended solely for service providers for digital and virtual assets, including the realms of metaverses, utility tokens, NFTs, DAO and other Web3-initiatives.
In 2022, VARA licences were granted to major industry players such as Binance, OKX, Huobi and the collapsed FTX.