Sheikh Mohammed bin Saud bin Saqr Al Qasimi, the ruler of Ras Al Khaimah, officially inaugurated the Ras Al Khaimah Digital Asset Oasis (RAK DAO) in October. RAK DAO is an economic free zone aimed at supporting companies involved in digital and virtual assets, as well as emerging technologies like the Metaverse, blockchain, Web3, and artificial intelligence (AI).
This free zone is dedicated to digital and virtual asset service providers, including those engaged in blockchain, utility tokens, virtual asset wallets, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and decentralized applications (dApps).
RAK DAO and its ecosystem partners intend to offer funding programs and specialized support in areas like technology, marketing, and business development to foster innovation in these sectors. Sheikh Saud expressed the vision for RAK DAO as a hub for the thriving development of digital assets, innovation, and groundbreaking ideas.
A memorandum of understanding was signed by Maryam Buti Al Suwaidi, CEO of the Securities and Commodities Authority, and Sameer Al Ansari, CEO of RAK DAO. Ras Al Khaimah aims to diversify its economy beyond traditional sectors, like tourism, by tapping into the digital asset industry.
While new free zones like RAK DAO have emerged to accommodate this industry, they face competition from established tech hubs in the UAE, such as Abu Dhabi and Dubai. The UAE offers various Web3-friendly free zones where entrepreneurs have 100% ownership of their businesses, enjoy unique tax schemes, and operate under specific regulatory frameworks.
Ras Al Khaimah introduced legislation in 2023, which granted RAK DAO financial, administrative, and legislative independence. This move was intended to create a specialized free zone for the virtual asset industry, emphasizing innovation. RAK DAO has since partnered with organizations like the HBAR Foundation, Rakbank, and Humans.ai, further expanding its ecosystem.
