Dubai consolidates its position as a global center for digital assets with a developed legislative environment and a highly efficient and reliable technical infrastructure

Hilal Saeed Al Marri, Director General of the Dubai World Trade Center Authority

Dubai is witnessing great momentum in creating a sophisticated legislative and regulatory environment to attract global virtual asset trading platforms and cryptocurrency companies, in conjunction with the continuous growth of the digital economy and “Blockchain” technologies, at a time when Dubai has mobilized its advanced capabilities and modern infrastructure, in order to innovate Strategic solutions to ensure comprehensive and sustainable growth of the digital business community in the emirate, through the application of policies and regulations that are friendly to currencies and digital assets and laying the foundations of a legislative and technical structure that keeps pace with global development in this field, in light of Dubai’s constant endeavor to create the best possible work environment that allows international financial companies to conduct their business in An advanced and conducive atmosphere, raising the level of innovation and achieving an added value to the economy.

Based on the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, a Higher Committee was formed headed by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, to specialize in future technology and digital economy and aim to chart the future of artificial intelligence and develop Plans to invest in the world of metaverses and build partnerships aimed at enhancing the digital economy of the Emirate of Dubai, as this step has strong indications of the extent of the attention paid by the wise leadership to this vital file, keenness to follow its developments and willingness to benefit from the promising opportunities it holds, to support the comprehensive and ambitious development process that seeks Through it Dubai to achieve global leadership in various fields.

The Dubai Virtual Asset Regulatory Authority has provided exemplary global standards that will provide an advanced platform to attract the most prominent global future economy companies to Dubai.

The establishment of the Dubai Virtual Assets Regulatory Authority comes as an important step towards regulating the global virtual assets scene, which is witnessing unprecedented expansion and growth, which leads to attracting companies and institutions operating within this promising sector to Dubai.

Dubai seeks to become one of the largest global economies to adopt the “Metaverse” technology, and it also seeks to be a global leader in adopting digital solutions with the aim of increasing the number of “blockchain” companies by five times.  

Among the most prominent global players in this promising sector, who move to Dubai to conduct their business and obtain licenses to operate in the emirate, are well-established international companies and institutions in this field, such as "Binance", "FTX", "Crypto.com" and "Coinbase". And “Pebyte”, in addition to the major traditional finance companies, such as “Galaxy Digital”, “Comino” and “Previn Howard”, as well as a large number of cryptocurrency and virtual asset service providers such as “BitOasis” and “Coinmena”.   

The launch of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum of the “Dubai Metaverse Strategy”, the new strategy supports this strong trend towards consolidating Dubai’s position among the top 10 cities in the leading economies in the field of “Metaverse”, making it a major center for the global “Metaverse” community and doubling The number of Blockchain companies is 5 times compared to the current number, and to enhance Dubai’s success in attracting 1,000 companies working in the Blockchain and “Metaverse” field, with the goal of creating 40,000 virtual jobs by 2030 and increasing the sector’s contribution to Dubai’s economy to $4 billion.

The announcement of His Highness the Crown Prince of Dubai to organize the “Dubai Metaverse Forum” in Dubai on September 28-29, 2022, with the participation of more than 300 participants from global experts, decision and policy makers, and more than 40 international institutions specialized in this sector, is an important addition that confirms Dubai’s progress in the ranks in This promising field, as the event will bring together elite experts from the region and the world to explore the future of the growing sector and study its capabilities and applications, and how to employ this revolutionary technology in various vital sectors for a better future for humanity, and improve the quality of life of communities around the world, at a time when global estimates indicate that The record growth potential of the metavirus sector ranges between 10 to 30 trillion dollars within 15 years.

Dubai is working according to the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, to establish 1,000 digital companies in Dubai over the next 5 years, and to support Dubai's digital economy and projects based on employing future technology and developing new future economic sectors.

In the same context, and last November, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, and Chairman of the Higher Committee for the Development of Capital Markets and Exchanges in Dubai, announced the launch of the “Dubai Future District Fund” with a value of 1 billion. Dhs in its first phase, with the aim of supporting entrepreneurs and emerging companies in the field of technology and encouraging them to later list in the Dubai financial markets and stock exchanges, as the fund will help stimulate and attract total investments for the startup sector, ranging from 1.5 billion to 4 billion dirhams.

Dubai, the financial and pivotal hub in the region, towards consolidating its position as a major global hub for the digital economy, is based on a world-class infrastructure and a sophisticated legislative and regulatory environment for companies and platforms of cryptocurrency and other virtual assets.

The first law to regulate virtual assets in Dubai, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum in March 2022, marked the start of a new legislative era aimed at providing the necessary systems to protect investors and dealers in this sector, while the law included the establishment of the Dubai Virtual Assets Regulatory Authority. In order to enhance Dubai’s international competitiveness, develop its digital economy, develop investment awareness in the virtual asset services and products sector, encourage innovations in this sector, as well as contribute to attracting investments and companies working in the field of virtual assets to make the emirate a center for their business.The Dubai Virtual Asset Regulation Law provides protection for investors through transparent and economic security regulations, supported by technologies and solutions that provide security and protection for transaction records through exemplary standards that are fully committed to combating money laundering operations, providing a safe and rapidly growing global business environment.

Helal Saeed Al Marri, Director General of the Dubai World Trade Center Authority, said: “Virtual assets are transforming the world of finance, and are expected to be the main driver of the global economy in the future. The establishment of the Dubai Virtual Assets Regulatory Authority came as the only independent authority in the world for virtual assets It serves as confirmation and consolidation of Dubai’s credibility in possessing the promising potential of this sector.” He added: “The regulatory framework of the Dubai Virtual Assets Regulatory Authority aims to stimulate cooperation and prioritize protecting investors, and our mission is to provide an advanced regulatory framework that allows the provision of economic opportunities without borders and securely across the industry. global virtual assets,” and he continued: “This global system and model work regulations in Dubai reflect Dubai’s permanent approach to adopting innovative trends and technologies in various sectors, thus consolidating the integrated and advanced system of the virtual assets sector, and contributing to strengthening Dubai’s position as a leading global center in this vital future sector, and achieving long-term economic growth through digital innovation.

Since the establishment of the Dubai Virtual Assets Regulatory Authority, the focus has been on providing a work environment of international standards to meet the needs of investors and companies working in the field of virtual assets, by attracting the most prominent global players in this promising sector.

The Authority's regulatory framework is based on strong and advanced technical expertise in relation to the "Blockchain" technology in order to ensure the availability of governance and security.

This is done through cooperation with the world's most famous players in this field, such as Chainalysis, Elliptic, Inchain and Confirm.

In addition to the licenses obtained by international institutions, financial services companies such as "Ventonia Group", "OKX" and the digital brokerage company "GCEX", recently announced the launch of their business in Dubai after obtaining licenses from the Dubai Digital Assets Regulatory Authority .

There is no doubt that Dubai’s success in implementing friendly policies and regulations was reinforced by the signing of the Binance platform, the largest cryptocurrency exchange in the world in terms of trading volume, of a cooperation agreement with the Dubai World Trade Center Authority in order to benefit from the platform’s global expertise in the field of digital currencies and encrypted assets. In the world, in support of the efforts of the Dubai World Trade Center to establish the best innovative system in the field of digital assets in the world, as it is indicated that the volume of digital trades on the “Binance” platform amounts to about 80 billion dollars, while the number of users of the platform around the world is about 28 One million users, while the volume of cryptocurrency trading last year 2021 on the platform amounted to about 7.7 trillion dollars.

This step was followed by Binance’s announcement last March that it had obtained a license from the Dubai Virtual Assets Regulatory Authority to establish and operate virtual asset trading services for investors.

In addition to its operations in the field of virtual asset trading, Binance will establish a center for blockchain technologies at the Dubai World Trade Center, to support new talent and develop a vital ecosystem in this field in the emirate.     

The choice of “Binance” to conduct its business through the Dubai Virtual Assets Regulatory Authority reflects the great confidence in the regulatory mechanism specialized in virtual assets in Dubai, which is subject to a comprehensive set of laws and policies applied globally in this vital and promising sector, while Dubai intends to continue developing this innovative system. To attract more major international companies in this sector, as this represents a motive to stimulate the future digital economy and encourage innovation, through the operating model provided by Dubai globally.

At the same time, Dubai has issued a license to the global heavyweight European digital platform FTX, while global companies such as “Krypto.com” are working to establish offices in Dubai, taking advantage of Dubai’s ambitious plans to stimulate investment in the digital economic sector By building strategic partnerships with the most prominent global players specialized in digital assets and financial transactions, to build a digital base in Dubai that qualifies it to play a pivotal global role in supporting the digital financial industry, by providing the appropriate investment climate, and providing innovative solutions that achieve added value for investors and consumers alike. And enhancing its ability to contribute to leading this sector globally, in light of the steady expansion in the volume of trade and investment, and the growing demand of societies for financial and economic digital means around the world.

Recently, Huobi Group, the world's leading digital currency and asset trading platform, announced its plans to establish a regional headquarters in Dubai, after recently obtaining a temporary license from the Dubai Virtual Asset Regulatory Authority.

The global platform was established in 2013, and since then, the platform has worked to be one of the most important providers of currency and digital assets services around the world, obtaining a range of licenses in many countries of the world including Japan, South Korea, Hong Kong and the United States. United and others.

The temporary license allows Huobi to offer cryptocurrency and virtual asset exchange products and services to investors and financial service providers.

The platform initially launched in China, but decided to expand and move its head office to Singapore.

It has become one of the largest platforms for the exchange of encrypted digital currencies, digital assets, digital economy and blockchain technology, as it provides many distinguished services to tens of millions of customers and investors in more than 100 countries and regions around the world, according to the platform's official website.

The daily trading volume of the platform in the year 2020 was estimated at 823 million dollars, ranking it fifteenth in the world according to the volume of trading.

Dubai’s leading role in the digital economic scene has grown and its ability to meet the growing demand in this sector by linking investors with consumers, and strengthening its position as a vital global center that connects all relevant parties. It has provided an attractive investment climate for financial technology companies and financial market infrastructure developers. The Dubai Multi Commodities Center witnessed an increase in the number of companies operating in the field of cryptocurrency and blockchain, as these companies accounted for 14% of the total 1,469 new companies that joined the center in the first half of 2022.

Ahmed bin Sulayem, CEO and CEO of DMCC, said: “Digital assets are playing an increasingly important role in DMCC’s drive to boost trade through Dubai. DMCC has so far attracted more than 400 companies and platforms out of a total of Asset and virtual currency companies in the UAE account for more than a third of the total number of companies.The DMCC’s Crypto Center provides a comprehensive system to facilitate the development and adoption of crypto and blockchain technologies.In addition to facilitating access to capital, talent, resources and opportunities, the “Crypto Center” works "Also closely with the Dubai government to ensure a strong operating environment is in place to cement Dubai's position as a global hub for crypto businesses."

In order to enhance Dubai’s leading role in this advanced digital sector, the Dubai Virtual Assets Regulatory Authority announced last month that it had entered the world of “Metaverse” by establishing a headquarters in the virtual world, which it called “The Sandbox”, as part of the authority’s efforts to consolidate its presence in the virtual world. Metaverse” and enabling industry components to access their services in their digital technology environment, in addition to facilitating cooperation between global virtual asset service providers.

This step reflects the confidence of the Dubai government that virtual assets are an integral part of the future digital economy, and confirms its willingness to consolidate the emirate's position as the capital of virtual assets in the world.

In an indication of the expansion of digital asset transactions at the societal level, the Al Jalila Foundation, which supports medical innovation, announced the start of receiving charitable donations in cryptocurrency, in partnership with one of the leading cryptocurrency platforms in this field. This comes at a time when it has become Cryptocurrency is more acceptable in Dubai for buying real estate, as Nakheel and DAMAC have announced their acceptance of cryptocurrency payments.

Dubai is now ranked among the world's leading cities in adopting and adapting modern technologies, with many modern business sectors at the fore, such as the financial technology sector and e-commerce.

According to the Digital Cities Index for 2022 issued by The Economist, Dubai ranked first in the Middle East and 18th globally in the adoption of digital technologies.

According to the same index, Dubai was among the top ten cities in the world in the field of digital finance, which confirms Dubai's global leadership in the field of modern infrastructure and regulations that enhance its capabilities and capabilities in order to double the number of companies using "blockchain" technologies and expand the range of cryptocurrency platforms. and digital assets.

The financial products sector that operates within the "blockchain" technology has also witnessed a boom in institutional and individual capital.

Within the digital assets sector, while the cryptocurrency market is growing at breakneck speed, its total global transaction volume achieved a global growth of $15.8 trillion in 2021, an increase of 567% compared to 2020, according to Chainalysis.

Research firm Technavio forecasts that the global non-fungible (NFT) token market will grow by $147.24 billion between 2021 and 2026, at an annual growth rate of 35.27 percent.

This great progress in Dubai’s advanced legislative and infrastructure infrastructure is in line with its success over the past few years in adopting smart technological solutions such as “blockchain” technology and adopting a strategy aimed at raising the efficiency of government services, and “digitizing” the economic sector. Chain» in achieving the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to transform Dubai into a city fully managed by the blockchain platform.

The strategy aims to discover and evaluate the latest technological innovations that help provide safe, more efficient and effective services.

The blockchain strategy helps create a new wave of economic opportunities and digital innovation for all sectors, in addition to enhancing Dubai's reputation as a world leader in technology and a smart economy that supports entrepreneurship and global competitiveness.

It is noteworthy that "Blockchain" is a new technology that began to change the future of the Internet, by adapting technologies to conduct transactions in more easy and secure ways, as the Blockchain strategy provides many economic opportunities for all sectors in the city, and enhances Dubai's reputation as a global leader in the field of technology, to excel in The field of smart economy that supports the Global Entrepreneurship and Competitiveness Program.

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