Abu Dhabi is preparing a $2 billion fund for Web3 startups

The UAE has been known for its neutral stance on cryptocurrencies – neither ban nor license the asset class. Recently, the capital of the United Arab Emirates, Abu Dhabi, announced a huge funding for Web3 startups.

Abu Dhabi’s tech ecosystem, known as Hub71, announced its Web 3 division on February 15th. According to Emirati news company WAM, the new initiative, called “Hub71 + Digital Assets,” has been awarded $2 billion in funding that will go towards building and developing Web3 and blockchain start-ups.

Moreover, the new division will remain based in Hub71 while providing first-class services and blockchain infrastructure for Web3 companies. Hub71 Executive Vice President Ahmed Ali Alwan stated that Hub71 + digital assets can bring about global changes in the decentralized world while noting the importance of blockchain technology in the next generation of the Internet.

It is important to note that the UAE Minister of State for Foreign Trade, Thani Al Zeyoudi, stated the country’s plans to use digital currencies at the World Economic Forum (WEF) last month. Speaking to Bloomberg, Al-Zeyoudi added that cryptocurrencies could be crucial to the UAE’s non-oil trade in the region.

Moreover, the Gulf country has formulated another initiative, the Financial Infrastructure Transformation (FIT) Program, to develop a Central Bank Digital Currency (CBDC). The Central Bank of the United Arab Emirates (CBUAE) is working on a digital dirham which could improve the country’s international trade.