Dubai is getting ready to join the league of countries making positive moves to accept cryptocurrencies, as reports have surfaced that it is working towards launching a special zone for its crypto space within the region.
Late last week, a press release published by the Dubai Multi Commodities Center (DMCC) confirmed that it would be establishing a “Crypto Valley” in the United Arab Emirates. The initiative was announced at the World Economic Forum in Davos last week. As the press release explained, the DMCC will be collaborating with Crypto Valley Venture Capital, a Swiss venture capital firm, to build out a sector in the region that will help to power blockchain and crypto innovation there.
Clearing the Way for Crypto to Thrive
The release added that the Crypto Valley would feature several co-working spaces, as well as mentorship and educational programs for people looking to pursue several careers in the crypto space. People looking to set up crypto businesses will also be able to take advantage of premium incubation services as well.
The DMCC is touting the fact that the valley will be located in one of Dubai’s free zones- areas across the region where businesses can set up without worrying about any corporate, personal, or withholding tax obligations. The region also doesn’t have any currency restrictions, and businesses will be able to have access to the entirety of their profits for whatever further investments.
In the statement, Ahmed Bin Sulayem, the Executive Chairman and chief executive of the DMCC, said. “DMCC is a dynamic business hub that drives local trade throughout Dubai. The launch of the Crypto Valley in DMCC will enhance the city’s dynamic business environment and support the wider strategy of the UAE government to attract innovators, entrepreneurs and pioneers that will shape the future economy.”
The DMCC already has over 17,000 companies registered with it, and the press release confirmed that the Crypto Valley would be headquartered in Jumeirah Lakes Towers- a business location in the DBCC’s business district.
Blockchain Holds Significant Potential Benefits for the UAE
The move is coming at the same time when new reports are showing just how much the UAE could benefit from blockchain operations. Earlier this month, local news medium Emirates News Agency ran a segment discussing “Inclusive Deployment of Blockchain: Case Studies and Learning from the United Arab Emirates,” a whitepaper published by the Centre for the Fourth Industrial Revolution UAE, the Dubai Future Foundation, and the World Economic Forum.
The whitepaper reported on a survey conducted by the organizations, in which they examined over 100 organizations across 60 governmental and non-governmental entities that already use blockchain in some way or the other. It went on to explain that by integrating blockchain into their operations, the Arab government can drastically reduce paperwork, for instance, potentially eliminating the need for up to 398 million printed documents and 77 million hours of work annually.
As the whitepaper reportedly shows, the UAE could save up to $3 billion by deploying blockchain technology across several of its departments. With the new Crypto Valley, those potentials could be further explored.