The free zone offers more than 170 technology-related business activities, 100% foreign ownership and fully remote company incorporation. The licence required depends on what the business actually does, particularly whether it develops technology or provides regulated financial and digital-asset services.
What the Free Zone Covers
Companies building software, platforms, R&D or non-custodial tools in the following areas can typically register under a standard commercial technology licence:
- Artificial intelligence — machine-learning platforms, data analytics, natural language processing, computer vision and AI-powered software.
- Web3 and blockchain — decentralised applications, protocol development, smart contracts and blockchain infrastructure.
- Digital assets — token projects and other digital-asset platforms and technology.
- Robotics and physical AI — industrial automation, robotics software, drone and autonomous-systems R&D.
- Gaming and iGaming — game engines, Web3 gaming technology and esports platforms.
- Health tech — digital health platforms, remote monitoring and AI-enabled diagnostics tools.
- Cybersecurity — security software and related technology services.
- Education technology — digital learning platforms and tools.
- Climate and resource technology — sustainability-focused technology.
- Creator economy — digital-content and creator-focused businesses.
Commercial Licence or Regulated Licence?
The required licence depends on how the company handles client money or digital assets and the services it provides.
RAK Innovation City handles company registration and licensing. Financial activities require approval from the relevant regulator. A company can develop a Web3 wallet or AI trading tool under its Innovation City licence, while services involving client funds or trade execution require additional authorisation.
Business Setup in the UAE
Metropolitan Consulting assists you in setting up a business in the UAE.
Setting Up
Innovation City offers several licence packages. Prices start at AED 6,600 per year:
*Premium activities, extra visas and premium office space cost extra.
The final price depends on the activities, visas, workspace and any additional approvals required.
The authority states that licensing can take around 5–10 working days, depending on the business activity and any additional approvals required. Company incorporation can be completed remotely. A visit to the UAE is required later for visa processing and opening a corporate bank account.
Why Innovation City
Innovation City uses a blockchain-based digital identity for company registration, and government fees can be paid in cryptocurrency. It also has the DAO Association Regime, which gives decentralised organisations a legal structure for activities such as opening bank accounts and signing contracts.
The free zone registered close to 400 companies during its first 12 months as RAK DAO. As a newer technology-focused free zone, it is still building its presence among international banks and investors. Crypto-related businesses may also need to consider banking requirements, which can vary by bank and business activity.
Frequently Asked Questions
Does a Web3 or AI startup need a financial licence to operate in RAK Innovation City?
Not for building the technology itself. A financial licence is only needed once the business starts offering regulated services such as exchanges, custody or brokerage.
Who regulates virtual-asset services in the UAE?
It depends on where the business operates. Dubai's Virtual Assets Regulatory Authority (VARA) regulates virtual-asset activity in and from Dubai. Elsewhere in the UAE, including Ras Al Khaimah, virtual-asset activity falls under the Capital Market Authority (CMA), the UAE's federal capital-markets regulator, formerly known as the Securities and Commodities Authority (SCA). Entities based in ADGM or DIFC follow those centres' own regulators instead.
Can the company be set up remotely?
Yes. Incorporation in RAK Innovation City can generally be completed without travelling to the UAE, though visa processing and bank account opening typically require a visit later.
What happens if a licensed tech company later wants to offer a regulated service?
It needs authorisation from the relevant regulator — VARA, the CMA, or ADGM's FSRA / DFSA — before offering that service. The RAK Innovation City licence on its own does not cover it.
