The Innovation City Law in Ras Al Khaimah 2025 introduced an important change to the legal identity of one of the UAE’s emerging technology and digital asset hubs.
Under Ras Al Khaimah Law No. (4) of 2025, the former Ras Al Khaimah Digital Assets Oasis, commonly known as RAK DAO, was officially renamed Innovation City. The authority previously known as the Ras Al Khaimah Digital Assets Oasis Authority was also renamed the Innovation City Authority.
The law was promulgated on 23 September 2025 and provides that the new names replace the former names wherever they appear in Law No. (2) of 2023 and Emiri Decree No. (23) of 2023. It also required the relevant authorities to make the necessary adjustments within 30 days from the date of promulgation.
This change is particularly relevant to businesses, investors, technology companies, Web3 projects, and entrepreneurs operating or planning to establish activities in Ras Al Khaimah.
What Is Innovation City in Ras Al Khaimah?
Innovation City is the current legal name of the area previously known as the Ras Al Khaimah Digital Assets Oasis or RAK DAO.
The original framework was established to support businesses operating in technology, innovation, digital assets, and emerging sectors.
The rebranding to Innovation City reflects a broader technology and innovation-focused vision while retaining the legal framework established under the earlier legislation.
The official legislation confirms that the previous name has been replaced by Innovation City and that the former authority name has been replaced by Innovation City Authority.
What Happened to RAK DAO?
RAK DAO is no longer the current official name of the area.
Previously, the area was officially known as:
Ras Al Khaimah Digital Assets Oasis
and was commonly referred to as:
RAK DAO
Following Law No. (4) of 2025, the official name became:
Innovation City
The authority responsible for the area also changed its name from:
Ras Al Khaimah Digital Assets Oasis Authority
to:
Innovation City Authority
The change applies wherever the previous names appear in the legislation covered by the new law.
Businesses and investors should therefore use the current legal terminology when preparing new contracts, applications, corporate documents, correspondence, and other official documents.
Why Was RAK DAO Renamed Innovation City?
The legal change was introduced through Ras Al Khaimah Law No. (4) of 2025.
The law specifically provides for the replacement of the former name with Innovation City and the former authority name with Innovation City Authority.
The change should not necessarily be interpreted as the complete cancellation of the previous legal framework.
Instead, Law No. (4) of 2025 primarily updates the legal names used within the relevant legislation.
This distinction is important for businesses that may still find older documents and online information referring to RAK DAO.
What Is the Legal Importance of Innovation City?
The legal importance of Innovation City extends beyond its name.
The area is positioned as an environment for companies operating in technology and emerging sectors, including:
- Digital assets.
- Blockchain technology.
- Web3.
- Artificial intelligence.
- Gaming.
- Robotics.
- Health technology.
- Decentralized applications.
- Emerging technologies.
- DAO-related projects.
However, the fact that a company is established in Innovation City does not automatically mean that it can conduct every type of digital asset or cryptocurrency activity.
The actual business activity remains an important factor when determining the applicable licensing and regulatory requirements.
Can You Establish a Digital Asset Company in Innovation City?
Innovation City may provide an attractive environment for businesses working in digital assets and emerging technologies.
However, investors should first identify the company’s actual activities before choosing the appropriate legal and licensing structure.
For example, a company may:
- Develop blockchain software.
- Build Web3 applications.
- Develop decentralized applications.
- Provide technology solutions.
- Operate an NFT-related project.
- Develop gaming technology.
- Provide blockchain consulting services.
- Develop digital infrastructure.
- Provide services involving virtual assets.
Different activities may have different legal and regulatory requirements.
Therefore, selecting a business license based only on a general description such as “crypto company” or “Web3 company” may not be sufficient.
Does an Innovation City License Automatically Allow Cryptocurrency Trading?
Not necessarily.
Obtaining a commercial license in Innovation City does not automatically mean that a business is authorized to conduct every financial or regulated virtual asset activity.
If the company’s activities involve regulated financial services, dealing with customer assets, operating an exchange, custody services, or other regulated activities, additional requirements or approvals may apply depending on the activity and the competent regulatory framework.
Businesses should therefore determine their actual activities before launching their operations.
Is Blockchain a Financial Activity?
Not necessarily.
Blockchain is a technology that can be used across many different sectors.
A blockchain company may provide:
- Software development.
- Cybersecurity solutions.
- Digital infrastructure.
- Decentralized applications.
- Technology consulting.
- Gaming solutions.
- Web3 development.
- Data and technology services.
On the other hand, another company may use blockchain technology to provide financial services involving virtual assets.
The distinction is therefore based on the actual services and activities of the business rather than the simple use of blockchain technology.
What About Web3 Companies in Innovation City?
Innovation City may be suitable for certain Web3 businesses, but Web3 is a broad term covering many different business models.
A Web3 project could be:
- A decentralized application.
- A blockchain protocol.
- An NFT project.
- A gaming platform.
- A DAO project.
- A technology platform.
- A digital asset service.
- A financial technology business.
For this reason, the legal requirements cannot be determined solely by describing a business as a Web3 company.
The key question is:
What exactly will the business do?
The answer can affect licensing, regulatory requirements, corporate structure, contractual arrangements, and compliance obligations.
What Should Investors Know Before Establishing a Company in Innovation City?
Investors considering establishing a business in Innovation City should carefully evaluate several important issues.
1. What Is the Actual Business Activity?
The business activity should be clearly identified before incorporation.
A company developing software may have very different requirements from a company providing financial services involving digital assets.
2. Will the Company Handle Customer Funds or Assets?
If the business will hold, transfer, manage, or otherwise deal with customer funds or virtual assets, additional regulatory considerations may arise.
This issue should be assessed before the company begins accepting customers.
3. Will the Company Issue a Token?
Token issuance can raise different legal and regulatory considerations depending on:
- The nature of the token.
- Its purpose.
- How it is offered.
- The rights attached to it.
- The intended users.
- The activities associated with the token.
A token project should therefore be legally assessed before launch.
4. Will the Company Provide Regulated Financial Services?
If the proposed activity falls within a regulated financial or virtual asset activity, the business should identify the relevant regulatory requirements and obtain any necessary approvals before commencing the activity.
5. Does the License Match the Actual Activity?
One of the most important compliance questions is whether the company’s licensed activity accurately reflects what the business actually does.
Operating outside the scope of an applicable license may create regulatory and legal risks.
What Does Law No. (4) of 2025 Change for Businesses?
The primary change introduced by Law No. (4) of 2025 is the legal naming of the former RAK DAO framework.
The former name:
Ras Al Khaimah Digital Assets Oasis
became:
Innovation City
The former authority name:
Ras Al Khaimah Digital Assets Oasis Authority
became:
Innovation City Authority
The law also provides that the new terminology applies wherever the former names appeared in Law No. (2) of 2023 and Emiri Decree No. (23) of 2023.
This is particularly important when preparing new legal and corporate documents.
Does the Name Change Cancel the Previous RAK DAO Rules?
No. The name change should not automatically be interpreted as the cancellation of the entire previous legal framework.
Law No. (4) of 2025 specifically addresses the change of names and provides for the replacement of conflicting local legislative provisions to the extent of the conflict.
Therefore, businesses should continue to review the underlying legislation and applicable regulations rather than assuming that the previous framework has completely disappeared.
What Are the Risks of Conducting Digital Asset Activities Without the Appropriate Approval?
One of the most important issues for investors is the distinction between:
establishing a company
and
being legally authorized to conduct a particular regulated activity.
A company may be legally incorporated while a specific activity conducted by that company may require additional licensing, approval, or regulatory authorization.
This distinction can be especially important for businesses dealing with:
- Virtual assets.
- Customer funds.
- Digital asset custody.
- Token issuance.
- Financial services.
- Trading platforms.
- Exchange activities.
- Other regulated financial services.
Businesses should therefore assess regulatory requirements before launching their products or accepting customers.
What Does Innovation City Mean for Digital Asset Investors?
The development of Innovation City reinforces Ras Al Khaimah’s focus on technology, innovation, and emerging industries.
For investors, the key consideration is not simply whether the area supports digital assets, but whether the proposed business activity fits within the applicable legal and regulatory framework.
A proper legal assessment should consider:
- Corporate structure.
- Business activity.
- Licensing requirements.
- Regulatory approvals.
- Digital asset classification.
- Token structure.
- Customer relationships.
- Data protection.
- Anti-money laundering requirements.
- Contracts and terms of service.
- Intellectual property.
- Regulatory compliance.
This approach can help investors identify potential legal issues before committing significant resources to a project.
Frequently Asked Questions
Is RAK DAO still the official name?
No. Under Ras Al Khaimah Law No. (4) of 2025, the official name was changed from Ras Al Khaimah Digital Assets Oasis to Innovation City.
What is the new name of RAK DAO?
The new official name is Innovation City.
What is the new name of the RAK DAO Authority?
The former Ras Al Khaimah Digital Assets Oasis Authority is now known as the Innovation City Authority.
When was the Innovation City Law issued?
Law No. (4) of 2025 was promulgated on 23 September 2025.
Can I establish a Web3 company in Innovation City?
Innovation City provides an environment for technology and innovation businesses, including Web3-related activities. However, the appropriate licensing and regulatory requirements depend on the company’s actual business activity.
Does an Innovation City license allow cryptocurrency trading?
Not automatically. A commercial license does not necessarily authorize every regulated virtual asset or financial activity. The specific activity and applicable regulatory requirements must be assessed.
Is blockchain considered a financial activity?
No, not automatically. Blockchain is a technology that can be used for both financial and non-financial purposes. The legal requirements depend on the actual services provided by the company.
Can a DAO be established in Ras Al Khaimah?
A legal framework exists for certain DAO-related structures within the Innovation City environment. However, the appropriate structure depends on the nature of the project, governance model, token arrangements, treasury, and activities.
Should new contracts use the name Innovation City?
For new documents referring to the area or its authority, using the current legal names is generally preferable. Existing documents using the former RAK DAO terminology should be reviewed according to their nature and purpose.
Conclusion
The Innovation City Law in Ras Al Khaimah 2025 represents an important development in the legal identity of the emirate’s technology and digital asset ecosystem.
Law No. (4) of 2025 officially changed the name of the former Ras Al Khaimah Digital Assets Oasis, commonly known as RAK DAO, to Innovation City, while the former authority became the Innovation City Authority.
The change is important for businesses, investors, Web3 projects, blockchain companies, and digital asset entrepreneurs because the current legal terminology should be reflected in new corporate and legal documents.
At the same time, businesses should not assume that operating in Innovation City automatically authorizes every type of cryptocurrency, virtual asset, or financial activity.
The correct legal approach is to identify the actual business activity, determine the applicable licensing and regulatory requirements, and ensure that the company’s operations remain within the scope of its legal authorization.
Legal Disclaimer: This article is provided for general legal and informational purposes only and does not constitute legal advice. Regulatory requirements may vary depending on the nature of the business, its activities, corporate structure, and applicable UAE and Ras Al Khaimah legislation.
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