By
Chimamanda U. Martha
February 9th, 2024
UAE megacity Abu Dhabi is beginning a well-funded initiative that would allow Web3 startups access vast resources for growth.
Abu Dhabi has launched a new $2 billion initiative to support the region’s Web3 and blockchain technology startups. According to reports, the United Arab Emirates city’s tech ecosystem, the Hub71+ Digital Assets ecosystem initiative, will also facilitate startup access to several programs and potential partners. These partners are likely of the corporate, government, and investment variety.
A press release further expounded on the newly-created Abu Dhabi initiative for Web3 startups. According to the announcement:
“The initiative will be based at Hub71 in Abu Dhabi Global Market (ADGM), providing Web3 startups with a progressive regulatory environment and world-class blockchain and virtual asset infrastructure.”
In addition, the press release explains:
“FABRIC, the research and innovation center of First Abu Dhabi Bank (FAB), is the anchor partner of Hub71+ Digital Assets, while digital asset exchanges and service providers are part of the initiative to facilitate the discovery, trading, and custody of digital assets.”
Stakeholders Address Abu Dhabi Initiative for Web3 Startups
Deputy Chief Executive Officer of Hub71, Ahmad Ali Alwan, commented on the development, describing Hub71+ Digital Assets as Abu Dhabi’s openness to blockchain-centric ideas. According to him, the UAE capital seeks to move the needle that would facilitate disruptive change and transformation on a global scale. In Alwan’s opinion, decentralization is the future of the blockchain-based internet, and Web3 startups are significant catalysts for this future.
Alwan also highlighted that collaborative opportunities provided by ADGM, FAB, and FABRIC and leading Web3 enablers would best serve startups. This is because these startups would be able to fundraise, develop, and commercialize innovations safely. In addition, all startup operations would take place within the largest regulated virtual assets jurisdiction in the MENA region.
Dhaher bin Dhaher Al Mheiri, CEO of ADGM, also weighed in on the Abu Dhabi Web3-friendly scheme. In Al Mheiri’s opinion, the Hub71+ Digital Assets launch would consolidate the association between ADGM and Hub71. Furthermore, he also noted that the emergence of new technologies and ecosystems, such as Web3, could potentially transform the world. According to Al Mheiri, the digital landscape continuously evolves, and ADGM remains committed to providing a holistic facilitatory environment. He believes an ADGM-backed environment would bring about the secure and seamless adoption of digital assets across the board. In addition, Al Mheiri also pointed out that the alliance will allow startups and digital assets to tap into ADGM’s diverse ecosystem. By accessing world-class and innovative infrastructure, startups would be better positioned to function at optimum capacity and capabilities.
Meanwhile, FAB Group Chief Operating Officer, Suhail Bin Tarraf, explained that the partnership would put FAB at the vanguard of blockchain innovation. According to Tarraf, banks currently garner the same trust intensity in blockchain affairs as they do in traditional finance. Therefore, the First Abu Dhabi bank remains positioned to leverage new opportunities.
Abu Dhabi Crypto Friendliness
Abu Dhabi has long been a proponent of widespread crypto adoption and applicability. The city introduced digital asset regulation in 2018 via its international financial center. Last month, a foundation based in AbuDhabi introduced a $1 billion Web3-focused fund.