Learning from the cases in Switzerland, the Dubai Multi Commodities Center (DMCC) announced that it would establish a “Crypto Valley” in the United Arab Emirates (UAE). The announcement was made in Davos during the World Economic Forum. DMCC is a state-backed entity that has now partnered with Switzerland-based CV VC to create a new industry in the UAE.
This new industry will strive to push blockchain and cryptocurrency innovation. According to the latest reports, Dubai’s Crypto Valley will comprise many co-working facilities. The facilities will offer mentorship and education for the individuals seeking a career in the blockchain industry. According to DMCC’s statement, the new amenities will also provide incubation services for various crypto-based businesses.
The executive chairman and CEO of DMCC, Ahmed Bin Sulayem, 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 the innovators, entrepreneurs and pioneers that will shape the future economy.”
The Free Zones
One of the key benefits of the DMCC is that it is located in one of Dubai’s many “free zones.” In these zones, there are no personal, corporate or withholding taxes. Additionally, the free zones do not have currency restrictions. The businesses operating in these zones maintain 100% of all the money that they generate.
Therefore, it means that all the crypto and blockchain firms that set up shop within the DMCC’s Crypto Valley will also benefit from the same tax-exempt status. At least 17,000 companies have already registered with the DMCC according to an official statement. Moreover, its new Crypto Valley will have its headquarters in Jumeirah Lakes Towers (JLT). The JLT is right in the center of DMCC’s business district.
The Dubai Multi Commodities Center also plans to establish rules and regulations for the cryptocurrency industry in the region. This is not the first time that the government of Dubai is experimenting with cryptos. In late 2017, Dubai announced its first plans to introduce a state-backed crypto known as EmCash.
Taking that into context, the government has announced that it aims to become the first international economy to run entirely on blockchain. In recent months, Dubai also partnered with German conglomerate Siemens to enhance blockchain education. With all these developments taking place, it appears like Dubai is set to realize its target of becoming a smart city in the coming years.