RAK DAO, Now Innovation City (2026): Setting Up a Web3, AI or DAO Company in Ras Al Khaimah

Last updated: September 2026. Innovation City's package prices below are the zone's own published figures, checked on 29 September 2026. Every price for another zone is labelled as BusinessDubai.ae's.

RAK DAO no longer trades under that name. On 18 September 2025, the Ras Al Khaimah Media Office announced that RAK Digital Assets Oasis had relaunched as Innovation City, with Web3 and digital assets now one of five focus areas alongside AI, gaming and iGaming, robotics and healthtech [1]. The law behind the zone did not change. The package names and prices did, and many pages still ranking for "RAK DAO" quote the old ones [2].

The bigger stake is scope. An Innovation City licence is a commercial trade licence. It lets you build a dApp, train models or run a games studio from Ras Al Khaimah, but it does not let you run an exchange, hold client crypto or manage anyone's portfolio. That work needs a financial regulator, and which one depends on where the company sits. A founder who misses the difference pays for the wrong structure and then pays again for the right one.

Since 2013, BusinessDubai.ae has set up companies across the UAE's free zones and mainland. This guide covers the rebrand and its legal basis, the four 2026 packages set against RAKEZ, IFZA and Meydan, what the licence covers and which regulator covers the rest, the DAO Association wrapper, the activity list, VAT and corporate tax, banking, and how Innovation City differs from RAKEZ and RAK ICC.

Is RAK DAO still called RAK DAO, and what changed in 2025?

No. RAK Digital Assets Oasis relaunched as Innovation City on 18 September 2025, and rakdao.com now redirects to innovationcity.com. The legal basis is unchanged: Ras Al Khaimah Law No. 2 of 2023, issued on 20 March 2023, with its Companies Regulations 2023 and DAO Association Regulations 2024. What changed is the name, the focus and the price list [1][3].

Law No. 2 of 2023 was issued by Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah. It gave the zone financial, administrative and legislative independence and affiliated it with the RAK Department of the Future [4]. The zone opened publicly on 19 October 2023 as a free zone for digital assets, Web3 and AI companies [5]. Innovation City's current regulations page says its Companies Regulations were issued by the Authority's Board "pursuant to Law Number 2 of 2023" [3], so the founding law survived the rebrand intact.

The relaunch widened the brief rather than replacing it. The RAK Media Office announcement names five focus areas, with Web3 and digital assets as one of them [1], and law firm Pinsent Masons described the change as a revamp into a broader technology hub [6]. For a founder, the table shows what actually moved.

One detail is still open. The Companies Regulations and the DAO Association Regulations were first issued before the rebrand and continue to apply. Innovation City's website now presents them under its own name, but this guide does not assume which legal title appears in any reissued text. If a bank or counterparty asks, point them to the current regulations page and the founding law.

Common Mistake: Budgeting from a RAK DAO price list. Figures still circulating under the old name, about AED 7,500 for a freelancer permit (one source says AED 6,250), AED 13,095 for a Launch or Engage package and AED 22,095 for Accelerate, belong to the pre-rebrand schedule [2]. Innovation City's own 2026 packages run from AED 6,600 to AED 22,550 [8]. If a quote uses the old package names, ask which current package it maps to before you pay anything.

How much does an Innovation City licence cost in 2026?

An Innovation City licence costs from AED 6,600 a year for the Idea package with no visa, AED 13,200 for Seed with one visa, AED 15,400 for Startup with one visa and room for four, and AED 22,550 for Growth with a dedicated desk, per the zone's packages page on 29 September 2026 [8].

All four are "starting from" annual prices published by Innovation City itself, which is more than many UAE zones offer. You can price the entry package without asking an agent. The table sets out each package with its visa and workspace basis.

Innovation City lists premium activities, additional visas and premium office space as "upgradeable extras" and does not publish what they cost [8]. Those three lines are where a real quote moves away from the headline. Ask for each one as a figure before paying, and confirm whether the included visa covers the entry permit, medical and Emirates ID or only the allocation.

Quick Math: Seed at AED 13,200 and Startup at AED 15,400 both include one visa. The AED 2,200 difference buys a visa cap of four instead of one [8]. If there is any chance you will sponsor a co-founder or a first hire in year one, Startup is the cheaper route to that second visa, because Seed cannot carry it at any price. A solo founder who will stay solo keeps the AED 2,200.

Pro Tip: Ask Innovation City for three numbers in one email: the year-two renewal price, the price of each visa above the one included, and whether your activity is standard or premium. The packages page publishes none of the three [8], and together they decide whether the package you chose is still the cheapest one in month thirteen.

How do Innovation City prices compare with RAKEZ, IFZA and Meydan?

On a one-visa basis, Innovation City's Seed package starts from AED 13,200, against BusinessDubai.ae's 2026 prices of AED 12,010 at RAKEZ, AED 21,050 at Meydan Free Zone and AED 21,400 at IFZA. Licence only, Innovation City's Idea package is AED 6,600 against AED 6,010 at RAKEZ and AED 12,500 at Meydan [8][26].

The two sets of figures come from different places. Innovation City's are the zone's own published starting prices. The RAKEZ, IFZA and Meydan figures are BusinessDubai.ae's all-in 2026 package prices for those zones. Innovation City is not on BD's price list, so no BD price is quoted for it, and IFZA publishes no prices of its own, so its figure is a partner price [26].

Read the table on the visa column, not the headline. At one visa, Innovation City's Seed and RAKEZ sit about AED 1,200 apart, and both sit roughly AED 8,000 below the two Dubai zones. What the Dubai premium buys is a Dubai address and, if your activity is regulated, VARA as your regulator instead of the CMA. What Innovation City's pricing does not show is the second visa, which is where BD's figures show zones diverge: RAKEZ adds AED 6,000 for it, Meydan AED 6,550 and IFZA AED 3,200 [26].

Our free zone company setup page prices the Dubai zones by visa count, and the IFZA vs RAKEZ comparison sets a Ras Al Khaimah option against a Dubai one line by line.

Real Talk: The cheapest Dubai packages carry a condition the headline hides. BusinessDubai.ae's 2026 pricing notes record that at IFZA and Meydan, a shareholder taking an investor visa must show at least AED 75,000 of capital in a bank account, in the UAE or at home [26]. Before letting a Dubai headline decide against Ras Al Khaimah, budget for that, and ask Innovation City in writing whether any capital evidence applies to its visa packages.

For an itemised quote on an Innovation City package beside RAKEZ and a Dubai zone, on the same visa basis, send us your headcount plan.

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What does an Innovation City licence cover, and what does it not?

An Innovation City licence is a commercial trade licence for non-regulated Web3, AI, gaming and similar technology activity. It is not a financial services authorisation. Exchange, custody, brokerage, dealing, portfolio management and investment advice on virtual assets need a licence from a financial regulator, which for a Ras Al Khaimah company means the federal Capital Market Authority [9][10].

Innovation City says so in its own words on its activities page: "Innovation City is a commercial freezone. Any activity falling within the regulatory mandate must be submitted to CMA for supervision and cannot be undertaken unless and until the entity has obtained the required full license or approval from CMA." [9] The page links straight to the Capital Market Authority's services page. A December 2024 legal analysis published on Mondaq listed the activities outside the zone's licence as virtual asset platform operation, custody, financial consulting, portfolio management, brokerage and dealing [10]. That list predates the regulator's rename but matches what the new federal framework licenses.

The line falls between building and handling. Building software, infrastructure or games around digital assets is commercial activity. Handling other people's virtual assets, matching their trades or advising them on what to buy is regulated activity. The table maps common models to that line.

The bottom four rows are where a trade licence and a financial licence part company. An Innovation City company can exist, hire and invoice for technology work, but it cannot start any of those four activities until the regulator says yes.

Common Mistake: Reading "Web3" or "digital assets" on a trade licence as permission to handle them. An Innovation City company that runs an order book, holds client keys or charges a fee for advising on token purchases is carrying on regulated activity, and the zone's own page says such activity "cannot be undertaken" until the CMA has licensed it [9]. The licence name does not change that. Map the business model against the CMA's activity list before choosing a package.

Which regulator licenses virtual asset activity where in the UAE?

Virtual asset regulation in the UAE depends on location. VARA regulates Dubai outside the DIFC under Dubai Law No. 4 of 2022, the DFSA regulates the DIFC and the FSRA regulates ADGM. Everywhere else, including Ras Al Khaimah, the federal Capital Market Authority regulates, having replaced the Securities and Commodities Authority on 1 January 2026 [13].

The rename came through Federal Decree-Law No. 32 of 2025, effective 1 January 2026 [13]. Before that, Cabinet Resolution No. 111 of 2022, in force from 14 January 2023, had made the Securities and Commodities Authority the federal supervisor of virtual assets outside the financial free zones, as law firms including Hadef & Partners summarised it [14]. VARA's reach stops at Dubai's boundary, so an Innovation City company never falls under VARA, whatever it does.

The CMA's 2026 virtual asset framework

The CMA's framework is CMA Decision No. 4/R.M/2026, which replaces the earlier federal virtual asset rules in full, according to law-firm summaries by Horiz Law and Clyde & Co published in April 2026 [12][15]. Those summaries list eight licensed activities: dealing in virtual assets as principal, dealing as agent, providing custody, arranging custody, operating a multilateral trading facility, portfolio management, investment advice and arranging investment deals. Capital runs from roughly AED 500,000 to AED 4,000,000 depending on the activity, or six months of operating expenses where that is higher, and the decision does not apply to VARA licensees or to the DIFC and ADGM [12].

These points come from secondary legal analysis rather than from the decision text itself, so treat them as medium-confidence evidence. Confirm the current capital figure for your activity with the CMA before you build a budget around it. Payment tokens and stablecoins sit on a separate Central Bank of the UAE track that this guide does not cover.

Real Talk: If your business is regulated, choose the regulator first and the free zone second. An exchange or custodian based in Ras Al Khaimah answers to the CMA. The same business in a Dubai commercial free zone answers to VARA, and in ADGM or the DIFC to the FSRA or DFSA. Capital, staffing and timelines differ by regulator, and the trade licence is the smallest cost in every one of them.

A Dubai commercial licensor sequences its own licence around VARA's, and our DWTC free zone guide shows how that two-stage virtual asset licence works, including what is forfeited if VARA does not license in time. Once licensed, a VARA firm also carries ongoing duties such as the travel rule, covered in our VARA travel rule guide. If a financial centre is on your shortlist, compare the DIFC business setup guide with ADGM, and our business setup in Abu Dhabi page covers the capital's options outside the financial free zone.

How does the DAO Association work as a legal wrapper for a DAO?

A DAO Association is Innovation City's legal wrapper for a decentralised organisation, created by the DAO Association Regulations 2024. It needs two to ten founding members, a guarantee pledge instead of share capital and a council elected by governance-token holders. Members' liability is ring-fenced, and the association may operate only on a non-profit basis [7].

The regulations define a DAO Association as "a membership-based organization that operates on a Distributed Ledger" and is incorporated in the zone [7]. The rules that decide whether it fits your DAO are set out below, all from the regulations as Innovation City publishes them.

The liability rule is the main reason a DAO looks for a wrapper at all. The regulations state that "the liabilities of a DAO Association, whether arising in contract, tort or otherwise, are the obligations of the DAO Association itself and not the personal liabilities of any Member or Officer" [7]. Founding members are still bound by the Guarantee they gave, so each still owes what they pledged if the association is wound up.

The regime is often called DARe. One legal services firm reports that registrations opened on 31 October 2024 [16]; that date could not be confirmed against an official announcement, so treat it as context rather than fact.

What a DAO Association costs

No official fee schedule for the DAO Association was found on Innovation City's site. Two consultancies advertise figures: a "Startup DAO" at about USD 4,500, for under 100 members, a treasury below USD 1 million and no public token sale, and an "Alpha DAO" at about USD 9,500, for a treasury above USD 1 million, a public token sale and 100 or more members [16][17]. These are consultancy prices, not Innovation City's, and the zone may price the product differently.

Real Talk: A DAO Association wraps governance, not profit-sharing. If token holders expect distributions from the treasury, the non-profit rule closes that door, and the permitted-activity rule excludes anything a financial regulator covers [7]. A DAO whose token or treasury behaves like an investment product needs a lawyer before it needs a wrapper. Decide what the DAO actually does with money first, then choose the vehicle.

How many activities does Innovation City license, and is there a code list?

Innovation City's activity count has no single consistent figure. One aggregated search summary says 170+ activities, the zone's own marketing implies 200+, and the most detailed third-party list names only 14 Web3 categories. Innovation City publishes no DET-style numeric code register, so confirm your exact activity wording in writing before you pay [9][11].

What Innovation City does publish is a sector list. Its activities page groups activity under 11 categories: Artificial Intelligence, Robotics and Physical AI, Web3, Gaming and Interactive Media, Digital Health, Creator Economy, Transportation Technology, Blockchain, Cybersecurity, Education Technology, and Climate and Resource Technology [9]. Individual activity names sit inside those categories, and the packages page sells premium activities as an upgradeable extra [8].

The named activities below come from a third-party list, not an official register, so treat the names as a guide to what exists rather than the wording that will print on your licence.

Dubai's Department of Economy and Tourism uses numbered activity codes that a founder can look up and quote. Innovation City has no equivalent public register, so there is no code to check a quote against, and the activity name the zone prints is the only record of scope.

Pro Tip: Send Innovation City one paragraph describing what the company will actually do, and ask for a written reply naming the exact activity it will print on the licence and whether that activity is standard or premium. Without a public code register, that reply is your record of scope, and it is what a bank reads when it asks what the licence covers.

The Dubai versions of these businesses have their own guides: our AI and technology business setup guide and our gaming and esports company setup guide cover licence choice, cost and tax for each.

Is Innovation City a VAT Designated Zone?

No. Innovation City does not appear on the Federal Tax Authority's Designated Zone list. Ras Al Khaimah's designated areas are RAK Free Trade Zone and RAK Maritime City Free Zone from the 2017 annex, plus Al Hamra, Al Ghail and Al Hulaila Industrial Zones, added on 4 July 2019 when RAK Airport Free Zone was removed [18][19].

The table sets out Ras Al Khaimah's position on the FTA's list as amended. The FTA's 2021 consolidated list shows RAK Free Trade Zone under the name RAK Port Free Zone [19].

This reflects the FTA's published list as amended; no later amendment adding Innovation City was found. For most Innovation City companies the practical effect is small. Designated Zone status changes the VAT treatment of certain goods moving within or between listed zones, while a Web3, AI or gaming company sells services, which are taxed under the ordinary rules wherever the company sits. Designated Zone status is also a VAT concept only and does not by itself deliver 0% corporate tax. Our RAKEZ free zone guide sets out which RAKEZ zones are on the list and why it matters for goods businesses.

What corporate tax and VAT does an Innovation City company pay?

An Innovation City company doing Web3 software, AI services or token-related services pays UAE corporate tax at 0% up to AED 375,000 and 9% above, because those activities are not on Ministerial Decision No. 229 of 2025's closed Qualifying Activities list. A company with revenue at or under AED 3,000,000 can elect Small Business Relief instead [20][21][22].

Small Business Relief is available for tax periods ending on or before 31 December 2029 under Ministerial Decision No. 131 of 2026, which amended Ministerial Decision No. 73 of 2023 [22]. A Qualifying Free Zone Person gets neither the AED 375,000 nil band nor Small Business Relief [21][22], so for a typical Innovation City company the ordinary regime is the one that applies, and often the better one anyway. The table maps common Innovation City businesses to the closed list.

A company that claims Qualifying Free Zone Person status and then fails a condition is taxed at the ordinary rates, 0% up to AED 375,000 and 9% above, from the start of that tax period, and it cannot be a Qualifying Free Zone Person for the next four periods [20][21]. For a Web3 studio with no qualifying income, there is nothing to claim in the first place: it is simply an ordinary taxable person.

Quick Math: An AI services company at Innovation City with AED 1,800,000 of revenue and AED 600,000 of taxable income would pay 9% on the AED 225,000 above the band, which is AED 20,250, as an ordinary taxable person [20]. Because its revenue is at or under AED 3,000,000, it can elect Small Business Relief for tax periods ending on or before 31 December 2029 and pay nil [22].

Common Mistake: Reading "free zone" as "0% tax". Many pages selling RAK DAO describe 0% corporate tax without saying that Web3 software, AI services and token services are not Qualifying Activities [2][21]. Registration is mandatory whatever the rate, and registering late costs AED 10,000 however small the company is [20].

VAT on virtual assets

Cabinet Decision No. 100 of 2024 amended the VAT Executive Regulations so that Article 42 exempts the transfer of ownership and the conversion of virtual assets, with effect from 15 November 2024 and retroactive to 1 January 2018 [23]. The exemption covers the virtual asset transactions themselves. Fees a Web3 studio charges for building software, or an AI company charges for its services, are taxed under the normal VAT rules, with registration mandatory above AED 375,000 of taxable supplies and voluntary from AED 187,500 [20].

Our Qualifying Free Zone Person guide sets out every condition, and our Small Business Relief guide covers the election and the 2029 end date. Your route depends on your activity and your revenue, and both can be modelled before you choose the zone.

Model your tax position→

Can a Web3 company at Innovation City open a UAE bank account?

A Web3 company at Innovation City can open a UAE bank account, but should expect the hardest review a new company faces. RAK DAO named RAKBANK as its first official banking partner under a memorandum of understanding, but the date and terms could not be verified, and an MOU does not promise that any single application will succeed [24].

The RAKBANK relationship rests on a RAK DAO press release titled "RAK DAO welcomes RAK Bank as its first official banking partner" and on LinkedIn posts that framed it as an answer to Web3 banking problems [24]. The release body could not be retrieved, because rakdao.com now redirects, and the announcement predates the 2025 rebrand. Treat it as a named introduction route, not a commitment that carries over automatically to Innovation City licensees, and ask Innovation City whether the arrangement still operates.

Several consultancy pages describe banking at the zone as "guaranteed" [25][2]. No zone can guarantee an account, because the bank makes the decision on its own file. BusinessDubai.ae's 2026 notes record that WIO and Mashreq Neo open readily for free zone companies in general [26], but a Web3 activity is still assessed on its own facts.

Expect the bank to ask whether the company holds or moves client virtual assets, where the founders' money came from, especially if it was made in crypto, and whether the licence wording matches the business described. The signatory will also need to be available in person, because there is no fully remote UAE account opening. Our corporate bank account guide covers what banks ask a new free zone company for.

Real Talk: Build the bank file before you apply, not after a refusal. That means a one-page business description stating plainly whether the company holds client funds or keys, the licence page showing the exact activity, and a clean source-of-funds trail for any founder money that started as crypto. If a bank has already declined you, our guide to overcoming bank account rejection covers the next steps.

Once the account is open, the licence renewal, visa renewals and the corporate tax return start to fall due within months of each other. Our post-setup services team runs that calendar so none of it lands on a release week.

How is Innovation City different from RAKEZ and RAK ICC?

Innovation City, RAKEZ and RAK ICC are three separate Ras Al Khaimah entities. Innovation City licenses technology and Web3 companies and DAO Associations. RAKEZ is the emirate's general economic zone for trading, services and industry. RAK ICC is a corporate registry for offshore International Business Companies, with no trade licence, no visas and no office.

All three are Ras Al Khaimah government entities marketed to foreign founders, which is why they get confused. The practical difference is what you walk away with, and the table sets that out.

Real Talk: A founder who only needs a Ras Al Khaimah licence with one visa is choosing between about AED 12,010 at RAKEZ at BusinessDubai.ae's price and AED 13,200 for Innovation City's Seed at its published price [26][8]. The AED 1,190 gap is not the decision. The decision is whether the activity you need exists on each register, and whether a second visa is coming, since Seed cannot carry one.

Our RAKEZ free zone guide covers the zone-by-zone split inside RAKEZ, and our RAK ICC offshore company guide covers the registry's uses and limits. If what you actually need is a holding vehicle for tokens, IP or shares rather than an operating company, our offshore company formation team can compare that route with a licensed company.

How long does Innovation City setup take, and what documents are needed?

Innovation City setup is advertised by consultancies at about 5 to 14 working days for the licence, with visas after. The usual document set is a passport copy, proof of address and shareholder details for each owner. These timelines are advertised, not a published service standard, so ask for a dated timeline in writing [25][2].

The order below puts the free checks first. Steps one and two cost nothing and prevent the most expensive mistakes in this guide.

Consultancies also advertise remote setup for foreign founders [2]. The licence may be remote; the bank account usually is not.

Which setup fits a Web3, AI or DAO business?

Innovation City fits non-regulated Web3 studios, AI startups, gaming studios and DAOs that want a legal wrapper, from AED 6,600 a year. It does not fit an exchange, broker or custodian on its trade licence alone, because those need a CMA, VARA, DFSA or FSRA licence, or a founder who needs a Dubai address for clients [8][9].

The table maps common founder profiles to a base, with the rule or figure that decides each one.

If your clients expect a Dubai address, or your model will need VARA, compare Dubai before committing to Ras Al Khaimah. Our free zone company setup page prices the Dubai zones by visa count, and our mainland company setup page prices the mainland route, which starts from about AED 15,000 and lets you contract directly with Dubai clients.

Real Client Stories

These are composite examples built from the situations Web3 and AI founders most often face when choosing RAK's Innovation City. Names and details are illustrative, and the only figures used are Innovation City's published packages and the rules cited above.

Ravi's AI analytics startup and the one-visa cap

Ravi, an Indian machine-learning engineer, chose Innovation City's Seed package at AED 13,200 for his AI analytics startup because it was the cheapest package with a visa. Five months in, he won a contract that needed a second engineer, and Seed caps the company at one visa. The Startup package, at AED 15,400, also includes one visa but allows up to four, so AED 2,200 more at the start would have covered the hire. He had also assumed the free zone meant 0% tax. AI services are not a Qualifying Activity, and with revenue under AED 3,000,000 his route was Small Business Relief. The lesson: price the visa cap and the tax route, not the headline.

Lena's OTC desk that was never a free zone question

Lena, a German trader, planned an over-the-counter desk buying and selling virtual assets for clients, and was drawn to Innovation City's Growth package at AED 22,550 with a dedicated desk. Before paying, she read the zone's activities page: regulated activity "cannot be undertaken" until the Capital Market Authority licenses it. Dealing in virtual assets is one of the eight activities in the CMA's 2026 framework, where law-firm summaries put capital at AED 500,000 to AED 4,000,000 depending on activity. The trade licence was the smallest line in her budget. She paused the package and built the regulatory file first. The lesson: for a regulated model, choose the regulator before the zone.

The developer collective and the non-profit rule

Six core contributors to an open-source protocol wanted a legal home for their DAO and chose an Innovation City DAO Association. The structure fitted: two to ten founding members, a Guarantee from each instead of share capital, and a council elected by governance-token holders, with liability resting on the association rather than on them. The snag came from the community, which expected treasury yield to be paid out to token holders. The regulations make the association non-profit, so surpluses are reinvested, not distributed. They rewrote the constitution around grants and development funding. The lesson: a DAO Association wraps governance, not profit-sharing.

Your next steps on an Innovation City company

Three decisions matter at Innovation City, and only one of them is price. The first is whether anything in your model is regulated, because exchange, custody, brokerage, dealing, portfolio management and investment advice need the CMA, VARA, the DFSA or the FSRA before any trade licence helps. The second is the visa cap, because Seed stops at one visa while Startup, for AED 2,200 more, allows four. The third is the tax route, which for Web3, AI and gaming work is the ordinary 0% and 9% regime or Small Business Relief, not a free zone 0%.

BusinessDubai.ae has completed 700+ company registrations across the UAE, with itemised pricing and no hidden fees. We will put an Innovation City package beside RAKEZ, a Dubai free zone company setup and a mainland company setup on the same visa basis, and flag where your activity crosses into regulated territory. After licensing, our post-setup services team can run the renewal, visa and corporate tax calendar.

Talk to a setup expert→

Frequently Asked Questions

What is RAK DAO?

RAK DAO, or RAK Digital Assets Oasis, was a Ras Al Khaimah free zone for digital asset, Web3 and AI companies, established under Ras Al Khaimah Law No. 2 of 2023. It relaunched as Innovation City on 18 September 2025. The founding law still applies, but the name, website and package list changed.

Is RAK DAO the same as Innovation City?

Yes. Innovation City is the new name for RAK Digital Assets Oasis, announced by the Ras Al Khaimah Media Office on 18 September 2025. It is the same free zone under the same founding law, with a wider focus covering AI, gaming and iGaming, robotics and healthtech as well as Web3 and digital assets.

Why does rakdao.com redirect to innovationcity.com?

Because RAK DAO rebranded as Innovation City in September 2025. The old rakdao.com pages, including the activities list and the regulations pages, redirect to their innovationcity.com equivalents, so the old domain is no longer the zone's live site.

How much does an Innovation City licence cost in 2026?

Innovation City's published packages start from AED 6,600 a year for Idea with no visa, AED 13,200 for Seed with one visa, AED 15,400 for Startup with one visa and a cap of four, and AED 22,550 for Growth with a dedicated desk. Extra visas, premium activities and premium office space cost extra, and those prices are not published.

Are the AED 7,500, 13,095 and 22,095 RAK DAO prices still valid?

No. Those figures belong to the pre-rebrand RAK DAO package list and are superseded by Innovation City's 2026 packages, which run from AED 6,600 to AED 22,550. Some consultancy pages still show the old figures, so ask any provider which current package its quote maps to.

Which Innovation City package includes a visa?

Seed, Startup and Growth each include one visa, and Idea includes none. Seed caps the company at one visa, while Startup and Growth allow up to four, with additional visas sold as an upgrade at a price Innovation City does not publish.

Does an Innovation City company need a physical office?

Innovation City's packages include workspace rather than requiring a separate lease: a shared desk on Idea, Seed and Startup, and a dedicated desk on Growth. Premium office space is sold as an upgradeable extra at a price the zone does not publish.

Can a RAK DAO company run a crypto exchange?

Not on its trade licence alone. Innovation City states that it is a commercial free zone and that any activity within the regulatory mandate cannot be undertaken until the Capital Market Authority has licensed it. Operating a trading platform, custody and brokerage all fall on the regulated side.

Is an Innovation City licence a financial services licence?

No. An Innovation City licence is a commercial trade licence for non-regulated activity. Exchange, custody, brokerage, dealing, portfolio management and investment advice on virtual assets need authorisation from a financial regulator, which for a Ras Al Khaimah company is the federal Capital Market Authority.

Is RAK DAO regulated by VARA?

No. VARA regulates virtual asset activity in Dubai, outside the DIFC, under Dubai Law No. 4 of 2022, and its reach stops at Dubai's boundary. Regulated virtual asset activity by an Innovation City company in Ras Al Khaimah falls to the federal Capital Market Authority.

What is the Capital Market Authority?

The Capital Market Authority (CMA) is the federal UAE regulator that replaced the Securities and Commodities Authority from 1 January 2026 under Federal Decree-Law No. 32 of 2025. It supervises virtual asset service providers outside Dubai's VARA regime and the DIFC and ADGM financial free zones.

How much capital does the CMA require for a virtual asset licence?

Law-firm summaries of CMA Decision No. 4/R.M/2026 put the capital requirement at roughly AED 500,000 to AED 4,000,000 depending on the activity, or six months of operating expenses where that is higher. These figures come from secondary legal analysis, so confirm them with the CMA before budgeting.

What is the DAO Association Regime?

The DAO Association Regime, often called DARe, is the legal wrapper created by Innovation City's DAO Association Regulations 2024. It lets a membership-based organisation operating on a distributed ledger incorporate in the zone, with a council elected by governance-token holders and liability ring-fenced from its members.

How many founders does a DAO Association need?

A DAO Association needs a minimum of two and a maximum of ten founding members at incorporation, under the DAO Association Regulations 2024. Each founding member gives a Guarantee, an undertaking to contribute assets if the association is wound up.

Does a DAO Association need share capital?

No. A DAO Association has no fixed minimum capital. Instead, each founding member gives a Guarantee to contribute assets on liquidation, which can be paid in fiat currency or in crypto.

Can a DAO Association pay profits to token holders?

No. The DAO Association Regulations 2024 make the association non-profit, so it cannot distribute dividends to members or token holders and must reinvest any surplus. A community that expects distributions needs a different structure and legal advice.

How much does it cost to register a DAO Association?

No official Innovation City fee schedule for the DAO Association was found. Consultancies advertise about USD 4,500 for a smaller "Startup DAO" and about USD 9,500 for an "Alpha DAO" with a larger treasury and a public token sale, but these are consultancy prices, not the zone's.

Are members of a DAO Association personally liable for its debts?

No. The DAO Association Regulations 2024 state that the association's liabilities, whether in contract, tort or otherwise, are its own obligations and not the personal liabilities of any member or officer. Founding members remain bound by the Guarantee they gave for liquidation.

How many business activities does Innovation City offer?

No consistent figure exists. One aggregated search summary says 170+, Innovation City's own marketing implies 200+, and the most detailed third-party list names 14 Web3 categories. The zone's own activities page groups activity into 11 sectors. Confirm your exact activity with Innovation City in writing.

Does Innovation City use DET activity codes?

No. Innovation City does not publish a numeric activity code register like the one used by Dubai's Department of Economy and Tourism. It organises activities into named sector categories, so the activity name printed on your licence is the record of your scope.

Can I set up an AI company in Innovation City?

Yes. Artificial intelligence is one of Innovation City's five focus areas since the September 2025 relaunch, and its activities page lists AI and robotics categories. An AI services company pays ordinary UAE corporate tax or uses Small Business Relief, because AI services are not a Qualifying Activity.

Can a gaming studio set up in Innovation City?

Yes. Gaming and iGaming are one of Innovation City's five focus areas, and Gaming and Interactive Media is a named sector category. Confirm the exact activity, and whether any real-money element needs a separate approval, in writing before you pay.

Can an Innovation City company launch a token?

Only if the token and its sale fall outside regulated activity. Innovation City sends anything within the regulatory mandate to the Capital Market Authority, so a token that behaves like an investment, or a public sale of one, needs regulatory advice first. Get a legal opinion on the token before choosing the zone.

Is Innovation City a VAT Designated Zone?

No. Innovation City is not on the Federal Tax Authority's Designated Zone list. Ras Al Khaimah's designated areas are RAK Free Trade Zone, RAK Maritime City Free Zone and the Al Hamra, Al Ghail and Al Hulaila Industrial Zones.

Is RAK Airport Free Zone a VAT Designated Zone?

No. RAK Airport Free Zone was removed from the FTA's Designated Zone list from 4 July 2019, the same date the Al Hamra, Al Ghail and Al Hulaila Industrial Zones were added. Confirm current status with the FTA before relying on it for goods flows.

Does an Innovation City company pay 0% corporate tax?

Usually not. Web3 software, AI services and token-related services are not on the closed Qualifying Activities list in Ministerial Decision No. 229 of 2025, so most Innovation City companies pay 0% on taxable income up to AED 375,000 and 9% above, or elect Small Business Relief.

Can an Innovation City company claim Small Business Relief?

Yes, if it is not a Qualifying Free Zone Person and its revenue is at or under AED 3,000,000. Relief applies to tax periods ending on or before 31 December 2029 under Ministerial Decision No. 131 of 2026, and it is elected on the return.

What happens if a company fails a Qualifying Free Zone Person condition?

A company that fails a Qualifying Free Zone Person condition is taxed at the ordinary rates, 0% up to AED 375,000 and 9% above, from the start of the tax period in which it fails. It also cannot be a Qualifying Free Zone Person for the next four tax periods.

Is VAT charged on crypto transfers in the UAE?

No. Cabinet Decision No. 100 of 2024 exempts the transfer of ownership and the conversion of virtual assets through Article 42 of the VAT Executive Regulations, with effect from 15 November 2024 and retroactive to 1 January 2018. Fees for software, AI or consulting services are taxed under the normal VAT rules.

Does Innovation City guarantee a bank account?

No. RAK DAO named RAKBANK as its first official banking partner under a memorandum of understanding, but the bank decides each application on its own file, and the date and terms of that arrangement could not be verified. "Guaranteed banking" in consultancy marketing is not a regulatory promise.

What is the difference between RAK DAO and RAKEZ?

RAK DAO, now Innovation City, is a technology free zone for Web3, AI, gaming and DAO structures. RAKEZ, the Ras Al Khaimah Economic Zone, is the emirate's general zone for trading, services and industrial companies. They are separate entities with separate price lists and activity registers.

How long does Innovation City company setup take?

Consultancies advertise about 5 to 14 working days for an Innovation City licence, with visas processed afterwards. These are advertised estimates rather than a published service standard, so ask for a dated timeline in writing before you commit.

References

[1] Ras Al Khaimah Media Office. "RAK Digital Assets Oasis relaunches as Innovation City", press release, 18 September 2025: the rebrand and the five focus areas of Web3 and digital assets, AI, gaming and iGaming, robotics, and healthtech. rakmediaoffice.ae

[2] Virtuzone. "RAK DAO" setup guide, labelled 2025: the pre-rebrand package names and prices (freelancer permit about AED 7,500, Launch or Engage AED 13,095, Accelerate AED 22,095), advertised timelines, remote setup and banking claims. Consultancy content, not Innovation City's figures. virtuzone.com

[3] Innovation City. Rules and Regulations page: the Innovation City Companies Regulations, issued by the Authority's Board of Directors pursuant to Ras Al Khaimah Law No. 2 of 2023. Read 29 September 2026. innovationcity.com

[4] WAM (Emirates News Agency). RAK Ruler issues Law No. 2 of 2023 establishing the free zone, 20 March 2023: the zone's financial, administrative and legislative independence and its affiliation with the RAK Department of the Future. wam.ae

[5] Cointelegraph. "UAE emirate launches new free zone for digital assets, Web3 and AI", 19 October 2023: the public launch of RAK DAO. cointelegraph.com

[6] Pinsent Masons, Out-Law. "UAE launches RAK Innovation City as revamped global tech hub", 26 September 2025: legal commentary on the rebrand. pinsentmasons.com

[7] Innovation City. DAO Association Regulations 2024: the definition of a DAO Association, founding members, the Guarantee, the Council, voting, liability, permitted activities and the non-profit rule. Read 29 September 2026. innovationcity.com

[8] Innovation City. Packages and pricing pages, read 29 September 2026: Idea, Seed, Startup and Growth starting prices, visas included and visa caps, workspace, and the upgradeable extras whose prices are not published. innovationcity.com

[9] Innovation City. Activities page: the statement that Innovation City is a commercial freezone and that activity within the regulatory mandate must go to the CMA, the link to the CMA's services page, and the 11 sector categories. Read 29 September 2026. innovationcity.com

[10] Mondaq (fin-tech). "RAK Digital Assets Oasis: The First Web3 Free Zone in UAE", 16 December 2024: the regulated virtual asset activities that sit outside the zone's commercial licence. mondaq.com

[11] JB Consultants. "Top Business Activities Permitted by RAK DAO Free Zone": a third-party list of named Web3 activity categories. Not an official register. jbconsultants.ae

[12] Horiz Law. "New virtual asset regulations: a summary of CMA Decision No. 4/R.M/2026", 2026: the eight licensed activities, capital bands and scope. Secondary legal analysis. horizlaw.ae

[13] Regulation Tomorrow (Norton Rose Fulbright). "UAE: SCA renamed CMA and other landmark legislations", January 2026: Federal Decree-Law No. 32 of 2025 and the 1 January 2026 effective date. regulationtomorrow.com

[14] Hadef & Partners. "Developments in UAE virtual assets regulations: issuance of Cabinet Resolution 111 of 2022": the SCA as federal virtual asset supervisor from 14 January 2023, excluding the financial free zones. hadefpartners.com

[15] Clyde & Co. "The UAE Capital Markets Authority replaces the federal VASP framework", April 2026: CMA Decision No. 4/R.M/2026 replacing the earlier federal rules. Secondary legal analysis. clydeco.com

[16] Legalnodes. "RAK DAO DARe regulation overview": the reported 31 October 2024 registration opening and advertised DAO Association fees. Consultancy content, not an official fee schedule. legalnodes.com

[17] DAOBox. "RAK DAO Association" legal wrapper page: advertised Startup DAO and Alpha DAO fees and their eligibility bands. Consultancy content, not an official fee schedule. daobox.io

[18] Federal Tax Authority. Designated Zones annex to Cabinet Decision No. 59 of 2017, as amended: the original Ras Al Khaimah entries, RAK Free Trade Zone and RAK Maritime City Free Zone. tax.gov.ae

[19] Federal Tax Authority. List of Designated Zones, consolidated to 21 September 2021: RAK Port Free Zone and RAK Maritime City, the Al Hamra, Al Ghail and Al Hulaila Industrial Zones from 4 July 2019, and RAK Airport Free Zone's end date of 4 July 2019. tax.gov.ae

[20] Federal Tax Authority. Federal Decree-Law No. 47 of 2022: corporate tax at 0% to AED 375,000 and 9% above, loss of Qualifying Free Zone Person status under Article 18(2), the AED 10,000 late registration penalty, and the VAT registration thresholds of AED 375,000 mandatory and AED 187,500 voluntary. tax.gov.ae

[21] Ministry of Finance. Ministerial Decision No. 229 of 2025 on Qualifying Activities and Excluded Activities: the closed list, the absence of a nil band for a Qualifying Free Zone Person, and Article 5(2). mof.gov.ae

[22] Ministry of Finance. Ministerial Decision No. 73 of 2023 as amended by Ministerial Decision No. 131 of 2026, issued 29 July 2026: Small Business Relief at revenue up to AED 3,000,000 for tax periods ending on or before 31 December 2029, with Qualifying Free Zone Persons excluded. mof.gov.ae

[23] PwC Middle East. Tax alert on FTA Public Clarification VATP040: Cabinet Decision No. 100 of 2024, the Article 42 exemption for the transfer and conversion of virtual assets, effective 15 November 2024 and retroactive to 1 January 2018. pwc.com

[24] RAK DAO. Press release "RAK DAO welcomes RAK Bank as its first official banking partner". Title confirmed through a search index; the rakdao.com page now redirects and its body and date could not be retrieved. rakdao.com

[25] Arnifi. "RAK DAO Business Setup" guide: current Innovation City packages, advertised 5 to 14 working day timeline, document list and banking claims. Consultancy content. arnifi.com

[26] BusinessDubai.ae. 2026 package pricing for RAKEZ, Meydan Free Zone and IFZA by visa count, the IFZA partner-price note, the AED 75,000 investor-visa capital note for IFZA and Meydan, the WIO and Mashreq Neo banking note, and the corporate tax figures that accompany those prices. businessdubai.ae