Representing the sovereign wealth fund of the Emirate of Abu Dhabi, Mubadala Investment Company is considering investments in the “cryptocurrency ecosystem”. Chief Executive Officer Khaldoon Al Mubarak stated this.
“I think it’s [crypto] is real, this is a business that had $200 billion worth of value two years ago, and is $2.5 trillion value today and growing. So, while many people are skeptics, I do not fall in that category,” he said. According to the top manager, the regulatory framework being formed in the country will allow digital assets to “become something new”.
Al Mubarak did not disclose details regarding investment plans. But explained that they affect areas related to cryptocurrencies, such as blockchain and energy consumption. Mubadala manages assets worth 894 billion dirhams ($243 billion).
Supporting crypto trading and related services in the DWTCA free zone
Recall that previously in September, the Dubai regulator approved the trading of cryptocurrencies in the free economic zone. The UAE Securities and Commodities Authority (SCA) and the Dubai World Trade Center Administration (DWTCA) have signed an agreement to support cryptocurrency trading and related services in the DWTCA free zone.
Thus, SCA will oversee the issuance, offering, listing and trading of crypto assets. Furthermore, the agreement sets the framework. This allows the DWTCA to issue the necessary permits and licenses for financial activities related to digital assets.
“DWTCA expects to become a hub for the emerging ecosystem of new technologies”. Said Helal Saeed Al Marri, CEO of DWTCA and the Department of Tourism and Commerce Marketing (DTCM).
Development Strategy for 2023-2026
In July, the UAE central bank announced the development of its own digital currency in the Development Strategy for 2023-2026. The main goal of this strategy is to become one of the ten leading central banks in the world.
Therefore, the UAE regulator has set a clear timetable for its implementation. Including this initiative in its development plan for the next few years. Moreover, the launch of the state digital currency implies the use of the UAE Pass digital identification system. Which will increase the population’s access to financial services.
In addition, the UAE’s state development program includes the introduction of digital technologies. Which will primarily be integrated into the finance industry through the use of artificial intelligence (AI) and big data. The UAE government also intends to apply the latest technologies in various monitoring and insurance systems.