Dubai Free Trade Zone Partners With South Korea to Expand Web3 and Metaverse Business

Summary

  • The Dubai Multi Commodities Centre (DMCC) has signed agreements with South Korea to expand Web3 and metaverse businesses in the emirate.
  • The DMCC has signed memorandums of understanding (MoUs) with the Korea Blockchain Industry Promotion Association (KBIPA) and Seongnam City.
  • Dubai is working to establish a local economy based on the metaverse, expecting it to contribute $4 billion by 2030.

Overview of Dubai Free Trade Zone Partnership

The Dubai Multi Commodities Centre (DMCC), one of the largest free trade zones in the world, recently signed partnerships with South Korean entities to bring more Web3 and metaverse businesses to the emirate. The agreements were made as part of a series of roadshows held in various cities in South Korea. The DMCC committed to supporting Korean companies in setting up their business operations within its zone. Ahmed Bin Sulayem, CEO of the Dubai Free Zone, expressed his enthusiasm for this move: “We are proud to contribute to the strong and resilient economic relations between the UAE and South Korea.”

Background Information on Metaverses

Interest and investment into metaverses have seen a decline over recent years; however, Dubai was one of the first places that embraced this technology as part of its structured government approach. In May 2022, a task force was created with an emphasis on promoting a local economy based around metaverses. By July last year, reports indicated that Dubai was looking towards taking some offices into these virtual worlds so government departments can operate there effectively. As part of this initiative, plans were set in motion for the sector to contribute $4 billion by 2030 while also creating 40,000 new jobs by 2025.

Advantages for Businesses Operating Within Free Zones

Business operations conducted within free zones often provide many advantages compared to those outside them. Companies operating within these zones are not subject to taxation or custom duties which makes them extremely attractive for foreign investors or entrepreneurs looking for a cost-effective way of doing business abroad. On top of this, many free zones offer services such as dedicated customer service teams who can help companies navigate any local laws and regulations they may need assistance with while they are establishing their business operations there.

Conclusion

The agreement between DMCC and several South Korean entities is an important step forward for both countries‘ economic relations as well as furthering Web3 businesses in Dubai’s free zone environment. This collaboration is expected to lead to increased investment opportunities while providing greater access into global markets whilst avoiding taxation or customs duties – making it highly attractive for prospective investors or entrepreneurs wanting to do business abroad at low cost.