Tencent Cloud, the cloud services division of the Chinese multinational conglomerate Tencent, has entered into a memorandum of understanding (MoU) with the crypto-centric free economic zone of the United Arab Emirates (UAE) 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, with the aim of exploring avenues for mutual growth. The initial agreement focuses on facilitating the growth of startups registered at RAK DAO, a specialized crypto zone situated 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, which will provide skill development and education. Additionally, the deal offers 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 stated that the collaboration would strengthen Ras Al Khaimah’s position as a technology hub.
Meanwhile, Tencent Cloud CEO Dowson Tong expressed the goal of the collaboration as setting new benchmarks in the Web3 space and unlocking new opportunities in the digital economy.
In the UAE, a “free-trade zone” allows entrepreneurs to have full ownership of their businesses within the country. These zones operate under their own regulatory frameworks and tax schemes, independent of the mainland, except for the UAE’s criminal law.
RAK DAO, launched in 2023, is a free-trade zone dedicated to virtual asset companies. It focuses on virtual asset service providers specializing in Web3 technologies such as the metaverse, blockchain, nonfungible tokens, decentralized applications, and decentralized autonomous organizations.
The UAE’s free-trade zone has also begun collaborating with various companies in the crypto ecosystem. In July 2023, it signed an MoU with the HBAR Foundation to assist ecosystem members in leveraging the Hedera blockchain.