UAE attracts blockchain firms in Asia, Europe with funding and residency
The United Arab Emirates (UAE) is pulling all the strings in its attempt to lure technology companies from Asia and Europe with a number of exciting offers. Part of the Gulf nation’s tools in its arsenal include fast-track business licensing and providing employees with attractive residential options.
A total of 300 firms are currently on the radar of UAE administrators, with Thani Al Zeyoudi, Minister of State for Foreign Trade, noting that nearly 40 companies were in advanced stages of a possible move. Al Zeyoudi told reporters that the government is currently looking at a 24-month timeline, with 2024 chosen as a tentative date to achieve its goals.
“The timing was very crucial because what we noticed from the beginning of the year was that many companies want to relocate due to inflation, the tighter regulatory environment in many parts of the world, including Asia, especially Singapore and Hong Kong,” Al Zeyoudi said.
The government will try to lure the technology companies by using “golden visas”, a 10-year stay with the added benefits of allowing foreigners to live in the country without the need for a sponsor. Al Zeyoudi notes that the plan is to gradually reduce its dependence on oil and branch out fully into the digital economy after making significant gains in tourism.
“We want to make sure that we take advantage of the fourth industrial revolution, so the latest technology, whether it’s the Internet of Things, blockchain, AI,” Al Zeyoudi said.
Digital asset service providers are already taking advantage of the government’s positive attitude to obtain operational approval in the UAE. Binance and Crypto.com are some of the firms that have set up bases in the country, while other firms use the UAE as their Middle East and North Africa (MENA) headquarters.
The drivers behind the influx of digital asset firms in the UAE
Digital asset firms have been attracted to the UAE by the lure of the country’s favorable attitude towards virtual currencies. Dubai, the economic live wire of the United Arab Emirates, has led the charge in the quest for the country to be a hub for digital assets following the implementation of Law No. 4 of 2022 (Dubai Virtual Assets Law), which established a new body for control of industry.
Apart from creating an enabling environment, Dubai’s government is also making its significant foray into the metaverse with the announcement that the strategy will provide 40,000 virtual jobs. Experts predict that the creation of metaverse jobs could contribute up to $4 billion in gross domestic product for the city.
However, the UAE faces competition from its Gulf neighbors such as Jordan, Bahrain and Saudi Arabia for the top spot in the industry as they announce their policy in favor of virtual currencies.
See: BSV Global Blockchain Convention panel, Blockchain for Digital Transformation of Nations
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