The government of Dubai will partner with Swiss crypto Valley to create the Dubai Crypto Valley in a free zone in the center of the country’s Central Business District.
The concept of “Crypto Valley” has been around for some time and has a working model in Switzerland and the Philippines. A Crypto Valley is an area where all kinds of crypto-related businesses and development are carried out and is a growth zone for crypto start-ups, it’s a Cryptocurrency hub.
Dubai is the latest to adopt this concept and has announced the creation of a Crypto Valley in Dubai. The announcement was made at World Economic Forum Annual Meeting (Davos 2020). Dubai is the most populous city in the United Arab Emirates with a population of about 4 million and with a sole aim of being the business hub of Western Asia.
United Arab Emirates have been on a mission to diversify from Oil and have been successful on this mission, today, only about 5% of the country’s revenue comes from oil, Dubai as a city mostly rely on revenue from tourism, trade and other financial services. Cryptocurrency seem to be the next mission of the city and the state in general with the announcement of a proposed Crypto Valley in the city.
A Dubai government entity, Dubai Multi Commodities Centre (DMCC) announced this development in Davos 2020. DMCC stated that it is launching a Crypto Valley in is free zone which is at the centre of the city’s Business District. This move they say is to enable the growth, development and acceptability as well as improve integrity across the Blockchain economy.
DMCC was established by the Government of Dubai in 2002 at a center location in Dubai and has a population of about 100,000 and more than 15,000 member companies from about 170 different countries. The aim is to provide the necessary infrastructure especially the physical and market infrastructure required to create a global commodities trade hub. DMCC free zone is the largest in UAE, the free zone is totally tax-free for both local and international companies. DMCC has since being a success and in 2019 DMCC received its fifth consecutive “Global Free Zone of the Year” award.
Ahmed Bn Sulayem, the CEO explained that the launch of a Crypto Valley in DMCC will help improve the dynamic business atmosphere of the city and that it is a big step in achieving the Government’s aim of attracting innovators and pioneer of the future’s economy.
Dubai and the UAE are known for implementing a futuristic plan of diversifying the economy. The current campaign of moving from total Oil dependency was just like that and it has been successful, at the time of its implementation, the way to achieve a solid economy with tourism doesn’t seem clear but that has been implemented and is working now.
With this move to pure Cryptocurrency, it is a pointer to the fact that UAE has some plan for Cryptocurrency and with the comment of the CEO it does seem the UAE is considering establishing and implementing a government approved Cryptocurrency economy to help in the economic campaign of the state. This is a meaninful step towards mainstream adoption and awareness.
For the proposed Dubai Crypto Valley, DMCC will be partnering with Swiss company, Crypto Valley Venture Capital (CVVC) and Crypto Valley Labs which is a subsidiary of CVVC. Switzerland already has a working model of the Crypto Valley and a partnership will help create a solid Crypto Valley in Dubai. The agreement was signed at Davos 2020.
DMCC stated that the Crypto Valley will offer variety of services which will include: incubation for Cryptocurrency start-ups, innovation services for corporate clients, Blockchain training, education and funding. That is coupled with the provision of necessary facilities for Blockchain and Cryptocurrency businesses.
The Crypto Valley will also be established in a Free Zone, this will boost participation both locally and internationally as the free zone is completely tax-free so, businesses will not have to pay tax and will be allowed to acquire their full profit without any fee.
Recall that the crown prince of Dubai who is also the Chairman of Dubai Executive Council, His Highness Sheikh Hamdan bin Mohammed Rashid AL Maktoum has previously launched a Blockchain strategy in the city. This development is in line with the strategy and the UAE Blockchain strategy 2021.
Dubai Blockchain initiative a huge mainstream adoption boost
For those familiar with countries like UAE and Qatar they know that development is swift in those countries and they are taking diversification very seriously. The indication in this Crypto valley development is creating it in a free-zone, that will encourage more participation and the growth will be swift. The success of this initiative may help implement a full UAE support for Cryptocurrencies and with a possible Crypto future, the UAE will want a share of the Crypto economy by giving it full support and trying to build a revenue generation system around the sector. With that, many other countries will be attracted to joining the trend.
With this development, Cryptocurrency institutions will be tempted to move to Dubai, creating another enabling environment for Crypto businesses. Blockchain cities and states keeps increasing from east to west, countries are supporting and regulating cryptocurrency businesses, with this wave of adoption, the future looks bright.