The Dubai Chamber of Digital Economy revealed the formation of the Dubai Digital Assets Business Group (D2A2). The role of the group is to strengthen and promote the digital asset sector within the UAE and across the Middle East.
D2A2 will explore how to improve the digital business infrastructure as well as growth of digital businesses in Dubai.
Omar Sultan Al Olama, the Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications and the Chairman of Dubai Chamber of Digital Economy, said that among the group's goals is to ensure challenges that are faced by digital companies are addressed.
Omar Sultan Al Olama added that the group's vision is to turn Dubai into the global capital of digital economy, a vision that is shared by Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai.
D2A2 will provide strategic market research in the digital sector to policy makers, stakeholders, governments and the private sector. The digital economy is regarded as the economy of the future.
Gaurang Desai, the Chairman of D2A2, added: “We see an opportunity to turn Dubai and the UAE into a regional hub for digital assets. That is why it is very important to work towards creating a bridge for the digital asset industry to further integrate into the world economy by cooperating with counterpart organizations across the world.
"We wish to welcome all experts in the industry to come and join D2A2, to help us spread the principles of accountability, integrity and transparency, and promote the highest professional and ethical standards.”
Crypto Exchanges Rush to Dubai
Many cryptocurrency exchanges flocked to Dubai. OKX obtained a license under Virtual Assets Regulatory Authority (VARA) on 14 July 2022.
Huboi Global acquired a Minimal Viable Product (MVP) license under VARA. Komainu, a crypto custodian firm that is backed by Nomura received approval to operate in UAE on 27 July.
FTX FZE (a subsidiary of FTX) obtained a license from VARA (MVP) on 29 July. Additionally, FTX obtained the virtual asset exchange (VAX) under VARA.
CoinMENA, a crypto exchange licensed by the central bank of Bahrain obtained a provisional license in Dubai.
Henri Arslanian recently left the financial services sector to launch a crypto fund in Dubai, 'Nine Blocks Capital Management.' The crypto fund is backed by Nine Masts Capital, a hedge fund based in Hong Kong that transferred $75M to the fund. 3 portfolio managers will be based in the Cayman Islands.
Arslanian has already relocated to Dubai.
Carlton Lai, the Head of Blockchain and Cryptocurrency Research at Daiwa Capital Markets explained why Dubai is attracting crypto companies in an interview to the Financial Times:
“I think it [Dubai] is currently the most appealing destination for many major crypto firms. The city had moved very quickly to hand out licences.
“Compare this with the likes of Singapore and Hong Kong, things have not only moved very slowly, but there [have] been numerous regulatory flip-flops that simply [reduce] the confidence in its regulatory direction."
The Dubai Metaverse Strategy
The Crown Prince of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum launched his plan to attract 5,000 metaverse and crypto companies to the city:
"Today we launched the Dubai Metaverse Strategy, the next revolution in the technological and economic field that will affect all aspects of life over the next two decades.
"We have 1,000 companies in Dubai currently working in this sector, which contributes $500 million to our national economy. We expect it to rise strongly during the coming period."
It has been estimated that 5,000 companies will add $4 billion to Dubai's economy and create 40,000 new jobs. Dubai will attempt to place itself among the top countries that welcome blockchain innovation in a regulated environment.
