The Dubai Multi Commodities Centre (DMCC) has revealed statistics on the creation of new crypto and blockchain businesses in the emirate. The DMCC is one of the largest free zones in the country. It has been steadily courting businesses from various foreign jurisdictions. The zone is now reaping the benefits of its work.
Cryptocurrencies in Dubai: a quarterly record for the DMCC
16% of the 655 new company registrations in the first quarter of 2022 in Dubai, would involve crypto and blockchain businesses, according to the Dubai Multi Commodities Centre (DMCC).
This increase would follow, according to the DMCC, the launch of DMCC Crypto – the zone’s crypto arm – in May 2021. The zone also recorded its best first quarter performance in 2022 since its inception in 2002.
In particular, the DMCC cited an increase, compared to previous quarters, in business startups from its top markets, which are India, the UK, Germany and France.
Outreach programs paying off
The free zone is also attracting more and more companies from China. Business startups originating from this jurisdiction have in fact registered a 34% increase. This increase is due, according to the DMCC, to “extensive Mandarin-language engagement programs that take place throughout the country throughout the year, and its representative office in Shenzhen.
The DMCC also had specific outreach programs for the area, targeting markets like Israel and Turkey. These efforts seem to have paid off. Business registrations from these two countries have increased by 350% and 100% respectively.
The DMCC has also noted increased interest in the area from other countries such as Indonesia and Vietnam.
For DMCC executive chairman and CEO Ahmed Bin Sulayem, “these 665 new companies in the first three months of 2022” would show “the enormous potential offered by membership of our Dubai free zone. This record for the zone comes in “a global economic climate” that “remains challenging. The DMCC’s performance is said to be due to “Dubai’s reputation as a leading business destination” which is “stronger than ever”.
Dubai wants to position itself as a paradise for crypto and blockchain companies. Binance has already benefited from its regulatory environment that is favorable to players in the sector, obtaining a license there in March 2022.
