Introduction
For a long time, the United Arab Emirates (UAE) has been one of the leaders in the field of high technologies in the Middle East region and in the world as a whole. The development of advanced technologies such as medicine, renewable energy, aerospace is part of a number of strategic initiatives of the UAE. Therefore, it is no surprise that the UAE has joined a small group of countries, including Australia, Switzerland and the United States, that are beginning to integrate blockchain technology into everyday life.
The Dubai Blockchain Strategy, as part of the broader Emirates Blockchain 2021 strategy, aims to make the UAE the world's first blockchain government and cultivate a favorable climate for blockchain development. A government operating with blockchain technology means:
- increased efficiency of government activities;
- the highest level of cybersecurity;
- a more favorable environment for companies operating in the field of blockchain.
How to set up a blockchain company in the UAE
If you want to open a company in the UAE, working in the field of blockchain technology, you need to register a business either in the UAE (Mainland company) or in one of the free zones offering these services, such as; Abu Dhabi Global Market (ADGM), Dubai International Financial Center (DIFC), Dubai Multi Commodities Center (DMCC) or Dubai Airport Free Zone (DAFZA).
- ADGM free zone
The ADGM Free Zone, offering 2,989 licensed activities, is located in the heart of the emirate of Abu Dhabi. ADGM is a business-friendly environment operating in accordance with the most modern international practices. Currently, a business wishing to work in this area needs to apply for a permit to provide financial services for asset management, the scope of which should be expanded to include the management of virtual assets.
- DMCC free zone
Freezone DMCC, located in one of the best areas of Dubai - Jumeirah Lake Towers, is one of the leading freezones in the world. This zone is home to large multinational corporations and start-ups, uniting more than 19,000 enterprises. Provides world-class services, modern infrastructure and a vibrant community. Companies working with blockchain can now obtain individual licenses at the DMCC Crypto Center, which was launched to support enterprises operating in the blockchain sectors. The DMCC has already signed a Memorandum of Understanding with the UAE Securities and Commodities Authority (SCA) to develop a regulatory framework for this type of business in the DMCC.
- DAFZA free zone
DAFZA is directly linked to Dubai International Airport (DXB), the world's busiest international airport. This free zone is home to over 1,800 companies from 20+ sectors and industries that benefit from a business-focused regulatory and tax environment. In May 2021, DAFZA management signed an agreement with the Securities and Commodities Authority. This agreement supports the regulation of blockchain-based technology in the free zone.
Conclusion
It is becoming increasingly clear that the UAE does not intend to stand aside when it comes to the implementation of blockchain technologies, be it government infrastructure, payment methods or investment opportunities. Like most assets, blockchain-based assets come with both many risks and huge profit potential. And, as with any new technology, it is only necessary to establish clear “rules of the game” to ensure the safety of all stakeholders. The UAE is a leading country in global innovation and digital technologies, a country that wants to reform and introduce new technologies. Therefore, it is obvious that for a technology such as a blockchain, which is considered one of the most important modern inventions, the United Arab Emirates will implement the most friendly regulations and laws.
