Abu Dhabi Launches $2B Initiative To Back Web3 And Blockchain Startups

On Wednesday, Abu Dhabi’s tech ecosystem, Hub71, introduced a $2 billion program to support Web3 and blockchain technology startups in the capital of the United Arab Emirates. The “Hub71+ Digital Assets” ecosystem initiative aspires to provide multiple startups access to a wide range of programs and initiatives, as well as potential partners in both the UAE and the global market, the statement said. 

Meanwhile, these partners will likely be from various business, government, and investment sectors. This brand-new initiative will be based at Hub71 in the Abu Dhabi Global Market (ADGM).

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.”

Moreover, the project will support firms relocating to Abu Dhabi and promote start-up growth in the Middle East and other global markets.

The press release stated:

“This ecosystem is dedicated to advancing Web3, a decentralised online space built on innovations like blockchain technology and metaverse applications.”

The press stated that FABRIC, the research and innovation center of the UAE’s largest bank, First Abu Dhabi Bank (FAB), is the anchor partner for Hub71+ Digital Assets. It also showed that service providers and digital asset exchanges are part of the project to facilitate the discovery, management, and trading of digital assets.

Suhail Bin Tarraf, FAB’s group chief operating officer, said that the bank is becoming a more reliable financial partner in the Web3 industry. 

Further, he added:

“Stay ahead of the curve when it comes to innovations such as blockchain, NFTs, and the metaverse, and fulfill their Customer First promise by leveraging new opportunities at the intersection of digital identity, ownership, and value.”

Abu Dhabi has long advocated the use and applicability of crypto. The country adopted regulations for digital assets in 2018. Abu Dhabi-based blockchain firm Venom Foundation and investment manager Iceberg Capital unveiled a $1 billion Web3-specific fund last month.

Main Partners of “Hub71+ Digital Assets” Initiative

Hub71 added a diverse range of partners and Web3 players that are part of the Hub71+ Digital Assets, Zawiya reported.

These includes:

• Digital asset exchanges and service providers: Binance and MidChains
• Tech providers: Amazon Web Services (AWS) and Mastercard
• Blockchain platforms: Venom Foundation, SUI Blockchain Algorand, Polygon, and Ton Foundation
• Venture studio that aids Web3 and digital assets startups development: Founders DAO
• Venture capital funds: Binance Labs’ $500M investment fund for Web3. As well as Venom Foundation and Iceberg Capital’s $1B fund for web3.

Deputy chief executive officer of Hub71, Ahmad Ali Alwan, said that recent projects show that Abu Dhabi is open to disruptive businesses that will facilitate change and transformation on a global scale. He believes that decentralization is the future of the blockchain-based internet, and Web3-based innovations are beneficial for the time to come.

Alwan mentioned that the partnership opportunities offered by FABRIC, FAB, and ADGM, as well as prominent Web3 firms and facilitators, would best serve startups. Because these startups can safely grow, raise funds and commercialize innovations. Additionally, startups would operate in MENA’s largest crypto-regulated space.

In October, a Chainalysis report revealed the Middle East and North Africa (MENA) region as one of the fastest-growing crypto spaces in the world. In the 12 months from June 2021 to June 2022, investors in the MENA region acquired $566 billion worth of crypto assets, up 48% from 2021, according to the report.

Metaverse is a 3D online space where users can interact with each other and with avatars and computer-generated objects. This technology was launched in the UAE 5 months ago to boost the UAE’s interest in blockchain.