The United Arab Emirates (UAE) is set to unveil a new legal framework for decentralized autonomous organizations (DAOs) within its Ras Al Khaimah Digital Assets Oasis (RAK DAO), a free economic zone focused on digital assets. This initiative aims to provide legal clarity for DAOs, including smaller organizations, allowing them to operate legally.
According to Irina Heaver, partner at NeosLegal, the framework will address governance, tax obligations, asset ownership, and offer legal protection to DAO founders and contributors.
Additionally, DAOs can enter legally binding contracts and resolve disputes within this framework. Notably, the regime allows DAOs to be established remotely in the UAE, without the need for physical presence, making it accessible to global participants.
The UAE’s competitive cost for DAO setup, starting at $3,000, contrasts with Switzerland’s $46,000, providing a more affordable option for smaller DAOs. This move is expected to solidify the UAE as a hub for blockchain innovation.