The UAE has been ranked in the top 2 for largest token sales volumes worldwide up to June 2019.
According to CoinSchedule, the UAE has emerged as the world’s second leading jurisdiction for digital token sales, accounting for more than one-fourth of global funds raised in Q1 2019. In comparison to last year, the UAE did not then even rank among the top 10 countries.
Ahmed Jacob, Managing Partner and CTO of INVAO, said:
“The fact that the UAE has accelerated in digital footprint in such a short span of time shows significant proof that the country is fast gearing towards digitalizing their economy rapidly and successfully. We have noticed that one of the main reasons for this leap in token sales is tied to two specific deals; GCBIB raised $142 million in developing banking and insurance products for the UAE token economy, and Bolton Coin’s STO raised $67 million by offering a way to invest in various asset classes including real estate and crypto mining.
The British Virgin Islands has so far attracted the most token sales in 2019. However, businesses choose to register in offshore locations primarily for tax and regulatory reasons, while the projects teams are often operating in other markets. The Bolton Coin STO issuer, for example, is registered in the Cayman Islands, but Bolton Coin runs its operation in the UAE.
Coin Schedule has therefore allocated these STO sales to the UAE. Most projects registered in the BVI and other offshore locations do not run an operation there. Thus, while the BVI ranks first for token sales, that does not mean investors should look to the BVI to find a vivid blockchain ecosystem. The UAE, on the other hand, is more homegrown, using digitalized tokens to develop their country, and they have been at the forefront of this technological adoption for the past two years making a move towards more blockchain-friendly regulations. INVAO has extensive experience of working and investing in both of these top two jurisdictions”
The UAE government has launched its Emirates Blockchain Strategy 2021, with the goal of transferring 50% of government transactions onto a blockchain-based platform by 2021 which could position the UAE’s ranking to the top position of the largest token sales globally.
The UAE has been leading the trend of digitalization. Smart Dubai Government Establishment, a city-wide initiative to transform Dubai into the world’s smartest and happiest city, implemented blockchain technology to its department towards the end of 2018, endorsing the power of technological development to improve business, finance and economy.
The Abu Dhabi Global Markets and Dubai International Financial Centre free zones already have blockchain-specific regulations in place. Not only that but UAE and Saudi-Arabias’ central banks are also currently experimenting with a digital currency to facilitate cross-border transactions.
Jacob said: “The major players in the UAE understand the growth potential of blockchain technology used for developing an economy and are looking for the right investment opportunities with the right advise on return on their investments, this can be comfortably achieved with many local digitalized projects and initiatives we are currently managing.
"We are confident that the UAE has positioned itself in one of the top positions for global blockchain investments making it a world leader in technology. For example, we have seen that the government has implemented a useful digitalized service where you can see the new ‘Payment Reconciliation and Settlement’ system that allows transactions to be performed accurately and in real time, making use of employees’ time and effort whilst encouraging the use of blockchain technology, if similar methods are applied in other sectors then we could fast be seeing consistency in program management, bringing efficiency in the work place.”
INVAO is currently working on developing and investing in blockchain products and raising funds for their IVO tokens to support the digitalized infrastructure that is currently being implemented in the region making it an experienced leader in the global blockchain ecosystem.
Our main focus is to attract more local investors from the region to support this homegrown economical movement.”
INVAO Group is a Blockchain Investment Management company with presence in Berlin, Liechtenstein, Dubai, and Singapore. INVAO develops financial securities enabling investors to participate in the growth potential of blockchain technology across various industries.