A Dubai government authority has announced that it is launching a crypto valley in the country’s free zone where there is no personal or corporate income tax. With the help of its partners from the Swiss crypto valley, Dubai will offer a variety of services such as incubation for startups, coworking facilities, blockchain training, education, events, mentoring and funding.
Also read: Regulatory Roundup — New US Crypto Tax Bill, Central Banks Join Forces on Digital Currencies
Crypto Valley in Dubai’s Free Zone
DMCC (Dubai Multi Commodities Centre), a Dubai government entity, announced at Davos 2020 on Thursday that it is launching a crypto valley in its free zone, at the heart of the city’s leading business district. DMCC explained that it is “Designed to foster growth, collaboration and integrity across the global blockchain economy,” elaborating:
The ‘DMCC Crypto Valley’ will offer a variety of services including incubation for early-stage startups, co-working facilities, innovation services for corporate clients, blockchain and entrepreneurship training, education, events, mentoring and funding.
“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,” commented Executive Chairman and CEO Ahmed Bin Sulayem.
Established in 2002, DMCC aims to enhance commodity trade flows through the country. Its free zone offers a range of benefits including 0% personal and corporate income tax. Members can also remit all profits made back to their home countries without restriction. In October 2019, DMCC received the Financial Times Fdi magazine’s “Global Free Zone of the Year” award for the fifth consecutive years. A total of 85 global free zones were nominated in the 2019 competition.
Situated in the heart of Dubai, DMCC is home to over 100,000 people and 17,000 member companies representing more than 170 countries and 20 business sectors. The companies range from startups to multinational corporations. Every month, 170 more companies join DMCC, 95% of which are new to Dubai, the authority says.
Partners From Swiss Crypto Valley
For the crypto valley launch, DMCC is collaborating with Swiss investment company Crypto Valley Venture Capital (CV VC) and its subsidiary CV Labs to develop “a comprehensive DMCC Blockchain Strategy that is aligned with the Emirates Blockchain Strategy 2021, and supports the Dubai Blockchain Strategy launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the crown prince of Dubai and chairman of Dubai Executive Council.” The agreement between the companies was signed on the sidelines of the World Economic Forum in Davos.
“We are thrilled to move into the MENA [Middle East and North Africa] region with DMCC as a strong local partner,” CV VC and CV Labs founder Ralf Glabischnig commented, adding:
We are looking forward to bringing our strong partner from crypto valley to Dubai, like Coreledger, Inacta, Lykke, and Tezos which are already active in the MENA region.
With the launch of its own crypto valley, Dubai joins the company of Switzerland and the Philippines, which have already established their own crypto valleys. The Philippines has built a crypto valley of Asia which will soon get its own airport.
What do you think of Dubai launching a crypto valley in its tax-free zone? Do you think it will attract many crypto companies? Let us know in the comments section below.
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Images courtesy of Shutterstock and DMCC.
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