UAE To Create The First World Crypto Freezone

The first World Crypto Freezone dedicated exclusively to digital and virtual asset companies is set to open in the UAE. The initiative is the brainchild of Sheikh Saud bin Saqr Al Qasimi, UAE Supreme Council Member and Ruler of Ras Al Khaimah, who has issued laws to establish the freezone under Law No. 2 of 2023.

Known as the Ras Al Khaimah Digital Assets Oasis, the World Crypto Freezone will be an independent governmental authority affiliated with the Department of the Future, which has also been created under Law No. 1 of 2023. The RAK Digital Assets Oasis is set to become the only freezone in the world that caters exclusively to digital and virtual asset companies engaged in new and emerging sectors such as the metaverse, blockchain, virtual asset wallets, NFTs, DAOs, DApp, and other Web3-related businesses.

Applications for the World Crypto Freezone will be accepted in the second quarter of 2023. The new law grants RAK Digital Assets Oasis financial, administrative, and legislative independence, enabling it to function as a purpose-built, innovation-enabling freezone in the virtual assets sector. The freezone will feature a comprehensive, bespoke, innovation-enabling digital asset approach.

The initiative aims to bolster economic growth and diversification in Ras Al Khaimah, promote the emirate’s growing status as a hub for innovation in the UAE, and enhance its competitiveness as a global destination for business. The new Department of the Future will be instrumental in 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.

World Crypto Freezone – What Is A Freezone?

A free zone, also known as a free trade zone or a special economic zone, is a designated geographic area within a country that operates under its own unique set of regulations and tax laws. The primary purpose of a free zone is to create a business-friendly environment that encourages investment, trade, and economic growth. By offering incentives such as tax breaks, simplified regulatory processes, and streamlined customs procedures, free zones aim to attract businesses and entrepreneurs, both local and foreign, to establish themselves in the area.

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Free zones typically operate in strategic locations, such as near airports, ports, or major highways, to facilitate transportation and logistics. These zones can be established for a variety of reasons, including promoting exports, creating jobs, and encouraging technological innovation. They offer a range of benefits to businesses, including duty-free import of raw materials, exemption from corporate and personal income taxes, and simplified customs procedures.

One of the most significant advantages of operating within a free zone is the ability to access a wider market. Companies that operate within these zones can easily import raw materials and export their products without being subject to customs duties or other trade barriers. This can significantly reduce the cost of doing business and make it easier for businesses to enter new markets.

In addition to facilitating trade, free zones also contribute to economic growth by creating jobs and stimulating investment. The establishment of free zones can attract both local and foreign investors who are looking for a favourable business environment, which can lead to increased economic activity and job creation.

Overall, free zones play a vital role in promoting economic development and trade. By offering a range of incentives to businesses, these zones encourage investment, stimulate job creation, and contribute to the growth of the local economy. Many countries around the world have established free zones as a way to encourage business growth and investment, and they have become essential tools for promoting economic development and global trade. It is believed that the first World Crypto Freezone will bring immense benefits to the UAE, especially, helping to focus tourism attention on Ras Al Khaimah.