Saqr Ereiqat, co-founder of Crypto Oasis, a venture-building firm, recently spoke at the Dubai FinTech Summit event about why the United Arab Emirates (UAE) is well-suited for crypto businesses. Speaking with Cointelegraph, the executive highlighted that businesses should consider a country’s regulatory infrastructure, digital infrastructure, and its ability to attract a global pool of talent when deciding where to set up shop. According to Ereiqat, the UAE checks all these boxes.
Ereiqat compared the regulatory frameworks of the UAE and the United States. While he recognized that the two countries have their own “strengths and weaknesses” in the crypto space, the executive argued that the UAE has taken a more proactive approach to regulating crypto. He explained that the UAE’s regulatory framework is more streamlined and business-friendly compared to the complex and fragmented regulatory environment in the US.
In addition to the regulatory infrastructure, Ereiqat also highlighted the UAE’s impressive digital infrastructure. Dubai, in particular, has been investing heavily in technology, with initiatives like the Dubai Future Foundation and the Dubai Blockchain Strategy. The UAE also ranks high in the World Economic Forum’s Networked Readiness Index, which measures a country’s ability to leverage technology for social and economic impact.
Finally, Ereiqat discussed the UAE’s ability to attract a global pool of talent. The country’s population is made up of more than 80% expatriates, which means there are already established networks of professionals from around the world. Additionally, the UAE has made efforts to attract and retain talent through initiatives like the UAE Golden Visa, which grants long-term residency to investors and skilled professionals.
The executive also highlighted the region’s significant amount of capital, which could potentially help crypto businesses when trying to raise funds for their projects. Dubai has long been a hub for venture capital, with investors from around the world targeting the MENA region. In recent years, there has also been increased interest in crypto projects, with companies like BitOasis and ArabianChain launching successful fundraising rounds.
Ereiqat noted that there’s already a growing interest in the region, with over 1,800 Web3 organizations in the region and more than 8,000 individuals working in the space. He added that the Dubai FinTech Summit was an important event that brings together stakeholders from the fintech industry. The presence of crypto and Web3 leaders and projects at the event is an important indicator of the growing interest and adoption of these technologies in the region.
Brian Armstrong’s Sentiments
Coinbase CEO Brian Armstrong also expressed similar sentiments in a fireside chat at the Dubai FinTech Summit event. According to the executive, the US may be “a little bit behind” in terms of regulatory clarity. Armstrong also said that the country is an exciting potential international hub for Coinbase.
Brad Garlinghouse’s Frustration
Apart from Armstrong, Ripple CEO Brad Garlinghouse also shared his frustration with US regulations at the event. According to Garlinghouse, defending themselves against the US Securities and Exchange Commission is about to cost the company $200 million.
In conclusion, the UAE’s regulatory infrastructure, digital infrastructure, ability to attract a global pool of talent, and significant capital make it an ideal location for crypto businesses. With increasing interest and adoption of these technologies in the region, it’s no wonder that companies like Coinbase and Ripple are considering it as a potential international hub for their operations.