United Arab Emirates is more than oil industry and Dubai’s opulent lifestyle.
The local authorities are fully aware that oil reserves won’t last forever and if they want to preserve a top financial position, the country’s economy must diversify and bet on advanced technology.
Here comes the blockchain industry and the cryptocurrency space.
From the start of 2019, blockchain-related companies based in UAE managed to raise more than $200 million for their projects, according to a report from InWara. Some of the most relevant areas where blockchain technology can be successfully applied are connected to the financial and health sectors.
From an official point of view, UAE started their journey into crypto in April 2018 by launching the Emirates Blockchain Strategy 2021. According to the displayed strategy, the local authorities intend on using blockchain operations for circa 50% of all financial transactions running in the Emirates.
Though most blockchain industry and crypto market encountered a major reduction of ICOs as a means of getting funding for blockchain related startups, we have to emphasize however that UAE took important steps into creating the necessary framework for companies that are interested to operate Security Token Offerings.
Security Token Offerings may seem similar to ICOs, but they are quite different since investors receive crypto tokens for their financial support. In addition, Security Token Offerings are much better at complying with national regulations while investors mitigate financial risks.
United Arab Emirates have attracted much attention lately from the blockchain media and specialized industry after becoming a world leader in attracting funds for companies involved in Security Token Offerings. To put all in perspective, it appears that UAE accounts for almost 55% of the total number of funds.
UAE is therefore not only an important local player but also a global influencer in the blockchain industry. The rich Arab country seems to have found the right balance between regulations and investors’ protection.