Chapter 11
Prominent Blockchain, Web3, and AI Initiatives in the UAE
The UAE has emerged as a global leader in fostering innovation in blockchain, Web3, and artificial intelligence (AI) technologies. Through strategic initiatives, the country is driving the development of digital ecosystems that support startups and established businesses in these fields.
The most prominent initiatives shaping the UAE’s technological landscape, particularly in blockchain, Web3, and AI are discussed below.
Hub71+ Digital Assets
Hub71+ Digital Assets is a key initiative launched by Hub71, Abu Dhabi’s leading technology ecosystem located in the Abu Dhabi Global Market (ADGM). This initiative is designed to accelerate the growth of Web3 startups and blockchain technology companies.
By leveraging ADGM’s regulatory framework, Hub71+ Digital Assets offers entrepreneurs the ideal platform to build and scale their projects.
The resources offered by Hub71+ include:
- Coworking spaces that foster collaboration.
- An accelerator program that provides structured support for early-stage companies.
- Access to funding and investors through an extensive network.
- Mentorship programs from industry experts.
- Networking opportunities to connect with a vibrant community of innovators.
Hub71+ is a crucial player in Abu Dhabi’s efforts to become a global hub for blockchain and Web3 technologies. It facilitates seamless interaction between regulators, investors, and innovators, providing a launchpad for disruptive technologies.
You can learn more about the initiative here: Hub71+ Digital Assets.
DMCC Crypto Centre
Launched in 2021, the DMCC Crypto Centre has rapidly developed into a thriving ecosystem for crypto entrepreneurs. Managed by the Dubai Multi Commodities Centre (DMCC), a free zone primarily focused on commodity trading, the Crypto Centre has become a hub for blockchain and crypto-related activities.
Currently, over 550 crypto firms are registered in the DMCC Crypto Centre, accessing a wide range of services such as:
- Infrastructure and office space specifically designed for blockchain companies.
- Meetups and networking events that foster collaboration and knowledge sharing.
- Advisory services for navigating the regulatory landscape.
- Access to investors and potential funding opportunities.
However, it’s important to note that DMCC does not have the authority to issue crypto licenses for regulated activities. As a result, Virtual Asset Service Providers (VASPs) operating from DMCC are advised to seek legal advice in relation to relevant licenses from Dubai’s Virtual Assets Regulatory Authority (VARA) to ensure full compliance with local regulations.
More information about the DMCC Crypto Centre can be found here.
DMCC AI Centre
The DMCC AI Centre is home to over 50 AI and robotics companies and aims to attract many more by offering a comprehensive ecosystem, including accelerator programs, access to funding, and partnership opportunities.
The launch of the DMCC AI Centre marks a significant step in Dubai’s goal of becoming a global hub for AI and emerging technologies, aligning with the UAE’s National Strategy for Artificial Intelligence, which aims to make the country a leader in AI by 2031.
More information about the DMCC AI Centre can be found here.
RAK DAO Free Zone
Launched in 2023, RAK DAO is the world’s first economic free zone dedicated entirely to digital and virtual asset companies.
RAK DAO is designed to cater to companies working in emerging sectors such as:
- Blockchain
- Metaverse
- Gaming
- NFTs (Non-Fungible Tokens)
- DAOs (Decentralized Autonomous Organizations)
- DApps (Decentralized Applications)
- Web3 and AI businesses
By providing a regulatory framework and supportive infrastructure, RAK DAO aims to become the premier global destination for companies involved in Web3, AI, and digital asset technologies. Entrepreneurs can access various services, including business setup support, coworking spaces, and networking opportunities, making it an ideal environment for innovative startups.
To know more about the Free Zone and available business activities, visit the RAK DAO’s website.
AI and Web3 Campus by DIFC
The Dubai International Financial Centre (DIFC) has launched the Dubai AI & Web3 Campus, positioning itself as a dedicated hub for AI and Web3 companies in the world. This initiative, part of DIFC’s broader 2030 strategy, aims to attract over 500 AI and Web3 companies, generate 3,000 jobs, and raise USD 300 million in funding by 2028.
The campus is designed to provide world-class infrastructure, including R&D facilities, accelerator programs, and collaborative workspaces.
The campus also offers a 90% subsidized commercial license for companies setting up within the campus, making it an attractive option for startups and established firms alike. Its focus is on fostering innovation in AI and Web3 technologies, particularly within the financial services sector.
A key element of the DIFC initiative is the AI Transformation Programme, an accelerator designed to help businesses enhance their AI capabilities.
This program aims to future-proof companies by offering C-level coaching, partnerships with startups and industry leaders, and access to top-tier hardware and software for concept creation and prototype testing. The initiative aligns with Dubai’s broader Economic Agenda (D33), which envisions AI contributing AED 103 billion to the UAE economy by 2035.
More about the initiative can be found here.
ADGM Online Dispute Resolution (ODR)
The Abu Dhabi Global Market (ADGM) has taken a significant step towards digital transformation in legal services with the launch of its Online Dispute Resolution (ODR) platform.
This fully digitized system offers companies and individuals the ability to resolve disputes through self-guided negotiations or mediation by internationally accredited mediators.
ADGM is setting a tone for the digital transformation of dispute resolution.
This is evident from the recent launch of “Mediation in the Metaverse” and the ambitious ADGM Web3 Courts initiative.
To learn more about ADGM Arbitration Centre visit their website here.
ADGM DLT Foundations Regime
In November 2023, ADGM enacted the Distributed Ledger Technology Foundations Regulations 2023 (DLT Foundations Regulations). The regulations aim to provide a comprehensive framework for DLT Foundations and decentralised autonomous organisations (DAOs), enabling them to establish so called ‘legal wrappers’, develop blockchain applications and issue tokens.
The DLT Foundations Regulations propose several significant measures, such as granting legal personality to DLT Foundations, requiring the engagement of a licensed company service provider, setting a minimum initial asset value, and establishing mechanisms for distributing profits.
Governance-wise, it requires a council with exclusive responsibilities and limited powers, the inclusion of governance mechanisms for token holders, potential founder removal and independent guardian appointment, and a charter detailing token use and buyback dynamics.
The Regulations have both advantages and challenges. On the downside, foundations lack flexibility and are more suitable for Layer 1 Protocols. Moreover, there is a minimum asset value requirement of $50,000. On the positive side, the Regulations require a licensed Company Services Provider, annual certification on the nature of the tokens, and a separate Foundation Charter that outlines a token governance mechanism.
