UAE launches RAK Innovation City as revamped global tech hub

The rebranding from Ras Al Khaimah Digital Assets Oasis (RAK DAO) to RAK Innovation City (RAK INC) is part of a broader project to reposition the emirate as the world’s first AI-powered free zone that integrates artificial intelligence into its regulatory frameworks, business services and infrastructure planning. 

The initiative will initially focus on five high-growth sectors: web3 and digital assets; artificial intelligence; gaming and iGaming; robotics; and healthtech and digital health. It aims to leverage AI to streamline company formation and operations, making the free zone an attraction destination for businesses seeking flexibility and innovation-friendly infrastructure in the region.

UAE-based digital markets expert Marie Chowdhry said the new hub would be a “transformative leap”, marking a new digital-first approach for RAK. “Innovation City is more than a name change, it’s a strategic pivot toward building a future-ready ecosystem for entrepreneurs, startups and tech enterprises,” she said. “It offers a sector-specific focus, including digital assets, gaming and AI, which gives our clients clarity on regulatory expectations and growth pathways.”

As part of the initiative, RAK will also invest in prime land and infrastructure tailored to technology firms, further cementing the emirate’s position as a testing ground for start-ups and entrepreneurs looking for a supportive and burgeoning environment to scale up their business. It is also expected that the AI-powered free zone will appeal to global technologies companies looking for new regulatory ‘sandboxes’ in which to expand their presence in the Middle East.

The new hub also aligns with the emirate’s broader goals of economic diversification, sustainable development and innovation leadership and provides further opportunities for global players in gaming and other burgeoning areas to enter the UAE market.