Dubai is building one of the world’s largest ecosystem for cryptocurrencies and distributed ledger technologies. Known as the DMCC Crypto Valley, it will foster the growth of blockchain in Dubai and the Middle East at large through training and mentorship to DLT startups, incubation, funding and more.
The ecosystem comes after an agreement signed by the government of Dubai and CV VC, a blockchain-focused venture capital firm. The government will work on the initiative through the DMCC, a flagship free zone that promotes the accelerated growth of enterprises in Dubai. The two revealed that they signed the agreement on the sidelines of the World Economic Forum in Davos.
The Valley will be developed in Jumeirah Lakes Towers, DMCC’s business district which is home to over 17,000 businesses. It will offer DLT businesses several services including incubation for early-stage startups, blockchain and entrepreneurship training, innovation services for corporate clients, education, funding and mentoring.
The CEO of DMCC, Ahmed Bin Sulayem remarked, “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.”
The Crypto Valley is aligned with the Emirates Blockchain Strategy 2021 which seeks to foster the use of blockchain to process over half of all government services. The benefits will include saving on costs, with a DMCC study revealing that it could cut down over 20% of the costs associated with physical paper costs in global trade. This cost currently stands at over $1.8 trillion.
Dubai will be looking to promote the growth of local blockchain enterprises as well as the founding of new ones. However, according to Ralf Glabischnig, the founder of CV VC, the city will also seek to attract the large global blockchain companies.
“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,” he stated.
Dubai’s Crypto Valley plans come just weeks after the Philippines revealed that it had partnered with Japan on a similar project. The Philippines is working towards building Asia’s first crypto valley, a special economic zone for blockchain and crypto companies. To make the zone accessible, the Filipino government will construct an $80 million airport.
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