Ras Al Khaimah’s establishment of the world’s first free zone for digital and virtual asset companies, the RAK Digital Assets Oasis, is a significant development in the global financial sector. The new law, Law No. 2 of 2023, grants the Oasis financial, administrative, and legislative independence to operate as an innovation-enabling free zone. This independence will help companies in the virtual assets sector to establish and grow their businesses, while mitigating underhanded activities such as money laundering and terrorism financing.

The Digital Assets Oasis will open for applications in the second quarter of 2023, and it will be the only free zone in the world exclusively for digital and virtual asset companies. It will provide a platform for companies innovating in new and emerging sectors such as the metaverse, blockchain, utility tokens, virtual asset wallets, NFTs, DAOs, DApp, and other Web3-related businesses. This development will have a significant impact on the digital and virtual asset markets globally, providing a unique platform for companies to innovate and grow their businesses.

The law aims to protect stakeholders and consumers in the financial sector. The virtual assets sector is still relatively new and technical, and there is a dire need for regulation to safeguard the relevant parties of transactions. The RAK Digital Assets Oasis is expected to be a game-changer for the industry, providing a secure and safe environment for digital and virtual asset companies to thrive.

This move by Ras Al Khaimah follows the establishment of independent organizations to regulate the market of digital or virtual assets in Dubai and Abu Dhabi in 2022. With the Digital Assets Oasis, RAK will serve as a gateway for global digital and virtual asset companies to establish their operations and grow their business in the UAE. This development will attract global investments, foster technological innovation, and elevate the UAE’s position as a leader in the digital and virtual asset markets.

For information on our Fintech Practice, please get in touch directly with Abdulla Ziad Galadari. Abdulla is Senior Partner at Galadari, and is the driving force behind the firm’s strategic development plan. He heads the FIntech Practice, and his team are available to answer any of your queries.

Abdulla Ziad Galadari Senior Partner abdulla@galadarilaw.com