Tencent Cloud, the cloud services division of the Chinese conglomerate Tencent, has entered into a memorandum of understanding (MoU) with the United Arab Emirates’ crypto-focused free economic zone to support the growth of startups through various initiatives.
On March 7, the Ras Al Khaimah Digital Asset Oasis (RAK DAO) announced the signing of an MoU with Tencent Cloud to explore opportunities for mutual growth. The initial agreement focuses on supporting the development of startups registered at RAK DAO, a dedicated crypto zone located in Ras Al Khaimah, one of the UAE’s seven emirates.
The MoU includes the establishment of a Tencent Cloud training center within RAK DAO to promote skill development and education. It also provides internship opportunities for companies licensed in RAK DAO and its partners within the Tencent Cloud ecosystem.
Sheikh Saud bin Saqr Al Qasimi, the Ruler of Ras Al Khaimah, described the signing of the MoU as a significant milestone for the emirate. He welcomed Tencent Cloud and expressed confidence that the collaboration would strengthen Ras Al Khaimah’s position as a technology hub.
Tencent Cloud CEO Dowson Tong stated that the collaboration aims to set new standards in the Web3 space and unlock fresh opportunities in the digital economy.
A “free-trade zone” in the UAE allows entrepreneurs to have full ownership of their businesses in the country. These zones have their own regulatory frameworks and tax schemes, independent of the mainland, except for the UAE’s criminal law.
RAK DAO is a free-trade zone that was launched in 2023 to provide a dedicated area for virtual asset companies. It focuses on virtual asset service providers specializing in Web3 technologies such as the metaverse, blockchain, non-fungible tokens, decentralized applications, and decentralized autonomous organizations.
The UAE free-trade zone has also started collaborating with various companies in the crypto ecosystem. In July 2023, it signed an MoU with the HBAR Foundation to support ecosystem members in leveraging the Hedera blockchain.