Dubai Multi Commodities Center (DMCC) is planning to launch its own Crypto Valley to be situated in a tax free zone within the United Arab Emirates (UAE). This move follows closely in Switzerland’s footsteps that has already established a similar setting to facilitate the development of blockchain initiatives.
The launch was announced at the 2019 Davos Conference with the state-backed DMCC stating that it had entered into a strategic partnership with the Switzerland-based CV VC to establish the sector in the UAE. This partnership is tasked with creating Dubai’s Crypto Valley which will be the largest cryptographic, blockchain and distributed ledger technologies ecosystem in the world.
The deal that was signed on the sidelines of the World Economic Forum in Davos outlines a working agreement between DMCC and CV VC together with its subsidiary CV Labs. Accordingly, these organizations will develop the crypto ecosystem in Jumeirah Lakes Towers (JLT), a DMCC’s business district that currently hosts over 17,000 companies. This district being a free zone offers multiple benefits. For instance, there are no personal, corporate or withholding taxes which might explain the large number of businesses registered there. Additionally, businesses get to keep all the money they earn while currency restrictions are non-existent thus providing an ideal platform for cryptocurrency projects.
According to Ahmed Bin Sulayem, DMCC’s executive chairman and chief executive officer, development of the Crypto Valley is aimed at adding versatility to the city’s already vibrant business environment. He stated that
DMCC is delighted to sign this agreement with CV VC, and launch the Crypto Valley in Dubai, at the very heart of Dubai’s leading business district.
Sat at the crossroads of the world, DMCC is a dynamic business hub that drives global trade through 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.
Dubai Crypto Valley is an ambitious project designed to accelerate growth, enhance collaboration and raise the integrity of the global blockchain economy. The DMCC-led initiative will provide a wide array of services so as to meet these goals. These include entrepreneurship training, blockchain education events, mentoring, early-stage start up incubation and project funding.
The initiative is devoted to fostering blockchain and cryptocurrency innovation as the nation seeks to establish leadership in these technologies. The sector will be multifaceted to accommodate various initiatives and diverse workforces. Therefore, the Valley will comprise of various co-working facilities to support all the development, education and mentoring programmes to be undertaken within the space.
The Dubai government hopes that these attractive features will provide sufficient incentive for developers, start-ups, and established blockchain companies to set up operations in its Crypto Valley.
Image courtesy of Wikimedia Commons
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