One of the seven emirates that comprise the United Arab Emirates, Ras Al Khaimah, has created a free trade zone for digital assets, following in the footsteps of Dubai and Abu Dhabi.

The region, known as the RAK Digital Assets Oasis, will support and develop initiatives pertaining to blockchain, metaverse, and artificial intelligence (AI). The new Web3 hub is part of the city’s economic plan, which intends to transition away from oil and tourism.

The zone’s official opening was attended by Sheikh Mohammed bin Saud bin Saqr Al Qasimi, the ruler of the city, as well as UAE business figures and the founders of Web3 companies. The new Web3 hub is meant to house startups working with digital wallets, non-fungible tokens (NFTs), and decentralized finance (DeFi). Plans for the hub have been in place since March.

Ras Al Khaimah, according to Sheikh Saud, is committed to embracing new and developing tech industries and leading national initiatives to bolster the UAE economy and promote sustainable growth in the area.

The Sheikh called on foreign companies to establish themselves in the trade zone, citing it as proof of the city’s determination to embrace digitalization for the purpose of “sustainable economic progress.” The CEO of RAK Digital Assets Oasis, Dr. Sameer Al Ansari, disclosed that the free trade zone will require subsidies, tax benefits, and regulatory and technical support to entice investment in the region.

Other advantages include rent subsidies, a blockchain pool for Web3 firms, assistance with business development, and a well-defined legal framework for the ecosystem. Ras Al Khaimah, on the other hand, is embracing digitization in an effort to increase its share of the UAE’s GDP and provide jobs for residents.

We believed that Ras Al Khaimah should and could gain from being a trailblazer, given the statistics and global patterns that demonstrate the immense possibilities athat digital assets provide, Sheikh Saud continued.

Due to their extensive experience managing free trade zones for digital assets, Dubai and Abu Dhabi currently hold a greater level of authority than Ras Al Khaimah. The Abu Dhabi Global Market (ADGM), powered by a new $2 billion initiative, is already home to hundreds of Web3 startups in the region, and key international exchanges are based in Dubai.

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