UAE to Launch World’s First Freezone for Digital and Virtual Asset Companies

The United Arab Emirates (UAE) is set to establish the world’s first freezone dedicated to digital and virtual assets companies. Sheikh Saud bin Saqr Al Qasimi, UAE Supreme Council Member and Ruler of Ras Al Khaimah, has issued laws to establish the freezone, called the Ras Al Khaimah Digital Assets Oasis. The independent governmental authority will be affiliated with the newly created Department of the Future and is established under Law No. 2 of 2023. It will become the only freezone in the world exclusively for digital and virtual asset companies that are innovating in new and emerging sectors such as blockchain, NFTs, utility tokens, DAOs, and DApps, among other web3-related businesses.

The new law will grant RAK Digital Assets Oasis financial, administrative, and legislative independence, enabling it to function as a purpose-built, innovation-enabling free zone in the virtual assets sector. The Digital Assets Oasis is expected to open for applications in the second quarter of 2023 and will be the world’s first freezone dedicated to digital and virtual asset companies, with a comprehensive, bespoke, innovation-enabling digital asset approach.

Aside from the establishment of RAK Digital Assets Oasis, Sheikh Saud bin Saqr Al Qasimi also announced Law No. 1 of 2023, which outlines the establishment of the Department of the Future. This law aims to enhance economic growth and diversification in Ras Al Khaimah, promote its growing status as a hub for innovation in the UAE, and enhance its competitiveness as a global destination for business. The new department will play a crucial role in promoting innovation and driving the emirate’s economic development in the digital age, positioning Ras Al Khaimah as a leader in innovation and entrepreneurship in the digital and virtual assets sector.

According to Sheikh Saud bin Saqr Al Qasimi, the new freezone will serve as a gateway for global digital and virtual assets companies to establish their operations and grow their businesses. He added that the focus on digitalisation and encouraging enterprises of the future would cement Ras Al Khaimah’s reputation as a destination of choice for next-generation business ventures and the economy of the future. The RAK Digital Assets Oasis will encourage young talent to implement their powerful ideas for the digital world and drive global digital players to expand their footprint, creating new jobs and promoting inward investment. Sheikh Saud bin Saqr Al Qasimi said that the new freezone would be a key economic growth engine for Ras Al Khaimah and the wider region.