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One of the most important take -away restaurants of Token2049 earlier this year was the VAE, and in particular Dubai, the most popular place (literally) on the crypto map. Based on the impressive footstep at the conference, which surpassed 15,000 international attendees, it was one of the most visited events of the year.
Held in Madinat Jumeirah, one of Dubai’s most iconic institutions, served the conference location a refreshing mix of a winding souk in Old-World style against the background of a stretched beach with palms, with the Burj al Arab, the only 7-star hotel in the distance.
That is one of the most striking peculiarities in Dubai: the contrast of the old and new ones; The striking dichotomy between progress and tradition. Automated E-ports welcome you at the airport, flawless hotels offer the ultimate comfort and style, and Bedouins tend camels in timeless desert sands.
Despite the punishing 45-degree heat with conference residents mopping perspiration from their eyebrows, Dubai revealed his unabashed intentions to be a leader in the crypto room, with some of the greatest names in the industry, including Solana and Ripple, who threw their hats in the Central Sea Ring.
Why does crypto companies flow to the middle -old?
More and more crypto companies are opening offices in this lively country, and almost every second person I interviewed had settled or thought about establishing a presence here. What attracts them to this shiny city of Shisha, Shisharma and Superlatives?
Dr. Marwan Alzarouni, CEO of the Dubai Blockchain centerThis helps shape Dubai’s Blockchain -Ecosystem through a private and public sector, told me:
“Over the past year, we’ve Seen the global crypto ecosystem evolve from a speculative wave to a more utility-driven era. In dubai specifically, the ecosystem has matured dramatically. There’s leg a marked inclux or cosystem and and and and and-about-top TOLUSYSTEM and and Anyystemtivesty and and Anyystem and and Anyystem and and Anyystem and and Anystart, and Anystart or whom now call dubai home, rather than just passing through. ”
The population of Dubai grew by more than 169,000 to 3.825 million in 2024, which was the fastest annual rise Since 2018. People from Verre and Zijd have come to the VAE because of the ease of doing business, safe streets, luxury hotels and white sandy beaches. What was once a fishing village on the edge of a desert, has become a modern world of radical skyscrapers, world-class resorts and, more last, crypto founders.
Tax benefits, talent, strategic location; Dubai has it all
As the most lively city of the VAE, Dubai offers a series of tax stimuli to support business growth, innovation and foreign investments. Many companies are exempt from corporation tax, such as companies with an annual income below 3 million AED (approximately USD 815,000) or that included in a qualifying free zone, such as the Dubai International Financial Center (DIFC) and Dubai Multi Commodities Center (DMCC). For those who do have to pay the piper, they look at tax rates that are overshadowed by people like Europe or the United States, justify 9%.
The strategic location of Dubai at the intersection of Europe, Asia and Africa provides considerable benefits to companies and investors, as a natural gateway for tourism and trade. Dr. Alzarouni explains:
“Companies are attracted by the city, not only for its policy environment, but also because of its access to capital, exceptional quality of life and a government that really works with the private sector.”
Digital Asset Financial Services Provider Hashkey group Has activities in Hong Kong, Singapore, Japan and Bermuda and has recently opened an office in Dubai, Hashkey Global Mena. Managing Director Ben El-Baz noticed:
“Strategically located in the heart of the region that is characterized by the recent transition from oil to technology and culture-driven economies, Dubai has established itself as one of the most important hubs for crypto industry in recent years.”
Leading Web3 Services Pioneer Animoca brands announced the opening of his Dubai location at the conference. I asked co-founder, executive chairman and general industrial legend, Yat Siu, which was behind this decision.
“You have to have a lively market, and Dubai is as lively as it becomes! They are not just investors, they are people who build, the talent and it attracts capital and growth. We have dozens and dozens of companies in our portfolio that are now in the UAE, and they were not in the UAE before.”
Top Dex Aggregator and Defi Solutions Provider 1 inch Is another Van Crypttos’s best to place a virtual flag on these exotic coasts. When asked why, co-founder Sergej Kunz explained that the interests of 1inch are ‘purely technical’. He said:
“The strategic position of Dubai as a worldwide hub with strong international connectivity, a deep technical talent pool and a safe environment has helped it as one of the most dynamic blockchain innovation centers. We can contribute to the momentum through our local software development effect.”
Regular clarity: VARA in the digital assets landscape of Dubai
Dubai’s Securities and Commodities Authority (SCA) draws up legal guidelines for the sector, while the Virtual Assets Regulatory Authority (VARA), recognized as the world’s first independent digital assets regulator, supervises and tests new virtual assets activities.
Free zones such as the DIFC and the DMCC offer extra operational flexibility. In particular, the DIFC has introduced a digital assets law that clearly defines the rules for managing and transferring digital assets. Dr. Alzaroui noted:
“Dubai is one of the few jurisdictions worldwide that offers a coherent, progressive regulatory environment and at the same time encouraging innovation. We have also seen a growing number of fairs, vasp’s, and infrastructure providers that have moved their head office to Dubai or Strategic Satellite and offices of this in the full regulation agents. Real-World blockchain-use cases such as Tokenized assets, financing on chains and decentralized identity.
Samar Sen, SVP -Head of APAC at Talos, a worldwide supplier of digital assets technology for institutions, told me:
“When there was a time of regulatory uncertainty, many companies flocked to the middle -East. I am very happy to say that the Midden -Oost not only handed out licenses. They have put together a rigorous due diligence and many companies have erased many good companies, crypto -founders and eye, the way in which the pioneer -energy lottery
El-Baz stated:
“Securing the Vasp license in the Mena region represents an important milestone in the market expansion strategy of Hashkey. While the VAE continues to settle as the most important hub for digital assets in the middle -Oosts will come to virto -to -virtual assets that are looking for trusted actions that are looking for a trusted acting actions”
Kunz Added:
“Although 1 inch itself does not have a regulated company in or out of VAE today, we see a strong potential in Dubai’s Regulatory and Innovation Ecosystem. We also continue to evaluate the possibility of participating in a regulatory pilot with VARA in the near future. Stay in line with emerging requirements.”
Government initiatives and high crypto -literacy
In recent years, Dubai and the VAE have organized a growing schedule of high-profile blockchain and crypto events, including Abu Dhabi Finance Week, Bitcoin Mena and Token2049, each of which draws thousands of market leaders, investors and innovators from all over the world.
These events not only show the ambition of the region, but also for international cooperation and knowledge exchange. In a further sign of institutional adoption, the Dubai government started accepting selected crypto payments for certain services, which emphasizes the continuous dedication of the emirate to integrate blockchain into public life.
Initiatives such as the Dubai Blockchain strategy Try to make Dubai the world’s first blockchain-driven government, to stimulate efficiency, transparency and digital innovation between sectors. Dr. Alzarouni explained:
“Government interests are very involved in innovators, helping pilots and public-private partnerships. In the Dubai Blockchain Center, our mission is to teach, advise and empowerment. We provide strategic advice to both public and private entities, organize technical and educational workshops, organize regulatory workshops and offering frameworks and the offering frameworks and the offering of important frames and the offering frameworks and the offering of important frames” and the offering of important frames “and the offering of important frames” and the offering of important frames “and the offering of important frames” and offering important frames “and offering important frames” and the bidding of important frames. “
Siu told his typical experiences that spoke with government officials in other areas of law, and noticed:
“In this region, so many people within the Royal Circuit and the entire government circuits are already in crypto. They understand, they understand, you don’t have to explain it, and it is much easier to have a conversation around those versus other places where you still have to go through the ABC.”
El-Baz Added:
“The Mena region has a diverse profile in terms of retail demography (local populations and expats) and institutional players (financial institutions, private companies and family agencies). The proactive approach of VARA, the Crypto regulator of Dubai, has promoted a lively cryptoeco -system environment.”
