Innovation City RAK (formerly RAK DAO)

Ras Al Khaimah created RAK DAO under a 2023 emirate law as one of the first free zones in the world built only for digital and virtual-asset businesses. The idea was simple: Web3 founders struggled to get ordinary commercial licences that named their real activities, so RAK built a zone where words like DAO, NFT, metaverse and blockchain development were on the activity list from day one.

On 18 September 2025 the Ras Al Khaimah Media Office announced that RAK DAO would continue as Innovation City. Web3 and digital assets stayed, but they became one of five focus sectors next to artificial intelligence, gaming and iGaming, robotics, and health technology. Reporting on the change describes it as an expansion of scope rather than a new authority, so existing licences carried over. You will still see both names online, and old rakdao.com links point to the new brand.

The most important thing to understand is what the licence is not. An Innovation City licence is a commercial and technology licence. It does not authorise you to run an exchange, hold client crypto, offer brokerage or issue regulated tokens. Those activities belong to regulators such as VARA in Dubai, ADGM's FSRA, or federal bodies like the SCA and Central Bank. The zone's own legal pages say activities that need those regulators are not permitted.

The community is therefore made of builders rather than brokers. Typical tenants write smart contracts, run node and infrastructure services, design games, develop AI models or tools, operate DAO treasuries as legal wrappers, or provide consulting and marketing to the Web3 world. Many are small remote teams with founders who spend part of the year abroad.

The zone also describes itself as the first free zone powered by AI, meaning it uses automation to handle licensing and support requests. In practice you deal with an online portal and a small team, and most steps can be completed remotely until visa biometrics.

Visas at Innovation City are bundled with package tiers. The entry tier carries no visa and is used for holding or IP companies, while the next tier includes one visa for a founder. Higher tiers and desk packages add a few more, but the zone is not built for large headcounts.

Once the licence is issued, you open an immigration file and request an entry permit or status change. The visa holder then completes a medical test and Emirates ID biometrics, which requires being in the UAE for a few days. Ask in writing whether any capital or deposit evidence is needed for your package, because rules on investor visas can change.

Banking is the hardest part for Web3 companies, and the zone name does not change that. UAE banks want to see that the company does not run regulated crypto services, where your initial money came from, and how fiat will move in and out. A software or consulting company with ordinary invoices is easier to bank than one paid in tokens.

Founders often start with a digital business account or a fintech account and add a traditional bank later. Keep wallet records, exchange statements showing your conversions, and contracts with clients ready before you apply.

Innovation City is based in Ras Al Khaimah, the northern-most emirate on the Gulf coast, and gives companies a registered address at its headquarters. Many tenants rarely visit, since most services are online.

Ras Al Khaimah International Airport serves regional flights, while Dubai International and Sharjah airports are about an hour away by road. Founders who want to live in Dubai often keep the RAK licence and commute only for occasional meetings.