The Middle East Blockchain Ecosystem “Crypto Oasis” is Expected to Reach 1000+ Organisations Target by Q2 2022
Innovation and disruption ignites surge within the Blockchain industry, and the local regulators are supporting the progress.
The Middle East has officially connected to the global Blockchain ecosystem in a way that expresses community and embodies excellence. Crypto Oasis, the larger ecosystem of Blockchain-related organisations initiated out of the UAE, 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, DMCC Crypto Centre was launched in full force and is with half of the Blockchain-based businesses registered within the free zone the core of the community.
"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.” says Ralf Glabischnig, Initiator of the Crypto Oasis.
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. Crypto Valley’s foundation in Switzerland began with less than ten Blockchain organisations in 2014, and by end of 2021, it had grown to over 1,100 Blockchain-related businesses with over 6,000 people contributing to it. With these numbers and rapid growth, Swiss Crypto Valley offers expertise in disruptive technology and it is only natural that such a thriving ecosystem would extend its reach and broaden its horizons.
The organisations that are active in the Blockchain space can be broken down into two different kinds. Native Blockchain organisations, that 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 are 40% of the total number and non-native companies that have adopted Blockchain are 60%.
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 fueled 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 like Cypher Capital and GHAF Capital Partners amongst others have also started to deploy capital in the industry.
The growth in the sector will be further supported by forward-looking regulations like the Dubai Virtual Asset Regulation Law which was announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai on March 9th 2022. 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.
The significance of Blockchain lies in its inherent transparency, trust and immutability. Our ecosystem embodies these characteristics and offers unique value to our partners. As we work towards our vision for the Crypto Oasis, we look forward to welcoming more organisations and aspiring entrepreneurs to our growing Blockchain ecosystem.