Dubai DMCC Plans Blockchain Crypto Tower

To increase transparency, blockchain will be used for smart contracts, on-chain voting and property.

In an effort to strengthen the emirate's position in adopting new technologies, the Dubai Multi Commodities Centre (DMCC) and Reit Development have revealed plans for a new facility that will showcase the useful application of blockchain.

According to a joint statement released on Wednesday, the DMCC's group of businesses related to blockchain, decentralised finance and Web3 will be housed in the 17-storey Crypto Tower, which will be built at its headquarters at Jumeirah Lakes Towers.

In line with the emirate's support for secure emerging technologies, the DMCC said it will employ blockchain for real estate, tenant management and ownership, on-chain voting and smart contracts.

A portion of the transactions and operational details of the development is documented on the blockchain, 'with full transparency and real-time access', according to the DMCC website. Land for the project was purchased in December 2021 for Dh16.5m ($4.5m).

Reit and the DMCC said operations will begin "shortly after" the completion of construction, scheduled for the first quarter of 2027.

Crypto Tower: An Innovative Development for Blockchain, Web3 and AI Innovation

According to the statement, the Crypto Tower will have nine floors with approximately 14,000 square feet of rentable space. It will have specific plans for incubators, venture capital firms and investments, as well as innovation space for artificial intelligence, which is currently the world's hottest technology.

Ahmed bin Sulayem, executive chairman and CEO of DMCC, said: 'The Crypto Tower is a pioneering development that sits at the intersection of blockchain, Web3 and real estate, offering a range of state-of-the-art facilities and services for the benefit of our members."

"Launching the Crypto Tower is a statement of our intention as we continue to cement Dubai's position as the world's leading innovation hub, as well as a practical demonstration of the future of Web3, where transparency and ownership are ensured by blockchain technology."

The technology powering cryptocurrencies and decentralised finance, often seen as a safer method of conducting business and with the potential to replace intermediaries such as banks and brokers in the financial system, is called blockchain.

As part of its economic development initiatives, the UAE has implemented a number of measures to integrate the blockchain technology into government, economy and society.

Dubai's Strategic Attention for the Blockchain and its Emergence as a Cryptographic Hub

A special focus has been given to blockchain, and several governmental initiatives have been formed. The creation of the Global Blockchain Council, the Dubai Blockchain Strategy and the Emirates Blockchain Strategy 2021 were some of the first initiatives.

In the meantime, institutional investors, hedge funds and large financial firms are moving to the UAE in a bid to make it one of the next high-growth global capitals in the cryptocurrency sector.

According to data from blockchain data startup Chainalysis, investors in cryptocurrencies in the UAE realised capital gains of $204 million in 2023.

"We are building a physical tower that serves as a central hub for the crypto community, merging blockchain technology with real-world construction in the Dubai DMCC," said Brenda Stratton, head of communications for Dubai-based Reit Development. "Every expense is on the blockchain, setting a new standard of transparency for the industry."

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