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Taking a page out of Switzerland’s book, the Dubai Multi Commodities Center (DMCC) is poised to establish its own “Crypto Valley” in the United Arab Emirates (UAE).
Announced at Davos last week, the DMCC, a state-backed entity, has teamed up with the Switzerland-based CV VC to build out a sector in the UAE devoted to pushing blockchain and cryptocurrency innovation. Dubai’s Crypto Valley will feature several co-working facilities, education and mentorship for those seeking careers in the blockchain space, and incubation services for crypto-based businesses, according to DMCC’s announcement.
“DMCC is a dynamic business hub that drives local trade throughout Dubai,” Ahmed Bin Sulayem—the executive chairman and CEO of DMCC—said in a statement. “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.”
One of the primary benefits of the DMCC is that it’s situated in one of Dubai’s many “free zones,” meaning there are no personal, corporate or withholding taxes. There are also no currency restrictions, and businesses keep 100 percent of the money they earn.
That means that the blockchain and crypto enterprises that set up shop in the DMCC’s Crypto Valley will likewise enjoy the same tax-exempt status. More than 17,000 companies are currently registered with the DMCC, according to the firm, and its new Crypto Valley will be headquartered in Jumeirah Lakes Towers (JLT) within the DMCC’s business district. The DMCC also plans to assist in establishing regulations for the crypto industry in the region.
It isn’t the first time that the government of Dubai has experimented with cryptocurrency. Dubai first announced plans for its own state-backed crypto, EmCash, in late 2017, and its government has said that it wants the country to be the first international economy to run entirely on blockchain. Dubai has also recently partnered with German conglomerate Siemens to boost blockchain education.