The Dubai Multi Commodities Center (DMCC) now hosts more than 230 blockchain-specific organisations, while the Middle East-based blockchain ecosystem Crypto Oasis is expected to cross its target of 1,000 organisations by Q2 2022.
The growth in the sector is likely to be further supported by forward-looking regulations, including the Dubai Virtual Assets Regulation Law, which was announced by Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai.
The first-of-its-kind law to regulate virtual assets in Dubai will present an advanced legal framework to protect investors and promote responsible business growth within a virtual asset (VA) industry governance.
The Dubai Virtual Asset Regulatory Authority (VARA) will be responsible for the implementation of this law and will monitor digital transactions and protect the personal data of users.
Native and non-native blockchain organisations
The organisations that are currently active in the blockchain space can be categorised into two different kinds: Native blockchain organisations, which have blockchain technology as their primary focus and reason of origin; and non-native blockchain organisations, which offer services or products related to blockchain and do not have blockchain as their primary focus.
Native companies comprise 40 percent of the total number, and non-native companies that have adopted blockchain comprise the remaining 60 percent.
During the last 18 months, talent from around the world has joined the “always open for business” environment of Dubai.
Local and international investments have fuelled the upcoming blockchain industry with venture capitalists such as Draper Goren Holm and the Woodstock Fund from Silicon Valley establishing their presence in the Crypto Oasis.
Local players such as Cypher Capital and GHAF Capital Partners amongst others have also started to deploy capital in the industry.
The Middle East has officially connected to the global blockchain ecosystem in a way that expresses community and embodies excellence.
Crypto Oasis’ contribution to the blockchain business sector
Crypto Oasis, the larger ecosystem of blockchain-related organisations, which was initiated out of the UAE, has developed a strong footing for innovative talent inspired by the successful Swiss Crypto Valley environment, as well as the UAE’s forward-thinking inventive leadership.
Proponents of Crypto Valley in Switzerland, one of the world-leading blockchain ecosystems, formed a collaboration with DMCC in January 2020 during the World Economic Forum in Davos.
In May 2021, the DMCC Crypto Centre was launched with half of the blockchain-based businesses registered within the freezone as the core of the community.
Ralf Glabischnig, the initiator of Crypto Oasis, said: “We have decided to bring our Crypto Valley experience and expertise to the Middle East because we believe in the region’s potential.
“We have witnessed how regulators in the region are welcoming innovation and disruption, making it simpler for Blockchain-related companies to secure licenses and operate. As of March 2021, this fast-growing ecosystem, reached over 700 organisations operating out of the UAE.”
The ecosystem in the UAE builds on the foundations set into motion back in 2016 by the Dubai Blockchain Strategy under the Dubai Future Foundation.
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