By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
RAK DAO, now operating as Innovation City, is Ras Al Khaimah’s technology free zone for Web3, blockchain and digital asset companies. A crypto mining firm registers here with a mining or mining facility activity, chooses a package from about AED 6,600 a year, and runs its machines from an approved data centre or industrial site. This guide covers licensing, power, costs, banking, tax and FAQs.
RAK DAO Is Now Innovation City
In September 2025, the Ras Al Khaimah Media Office announced that the Ras Al Khaimah Digital Assets Oasis (RAK DAO) had relaunched as Innovation City. The founding law stayed the same, but the name, website and packages changed, and the zone now covers AI, gaming and other technology sectors alongside Web3 and digital assets. The old rakdao.com address now redirects to the new site.
For founders, this means:
- Existing RAK DAO licenses continue under the Innovation City name
- New applications go through Innovation City’s company formation portal
- Web3, blockchain and DAO activities remain a core focus
- Older price lists for RAK DAO packages no longer apply
We use “RAK DAO” in this guide because many investors still search for it, but your license will show Innovation City.
Why Set Up a Crypto Mining Firm in RAK DAO?
- Digital asset focus: the zone was built for blockchain and crypto businesses, so activities like mining, hosting and Web3 development are familiar to the licensing team
- 100% foreign ownership with no local sponsor
- Low entry cost: packages start well below many Dubai free zones
- Fully digital setup: most of the process runs online
- Banking partnerships: RAKBANK and Wio are named among the zone’s partners
- Lower costs in Ras Al Khaimah: rent, staff housing and industrial land are cheaper than in Dubai
If you are still comparing emirates and zones, start with our business setup in Dubai services and our guide to Ras Al Khaimah free zones, costs and process.
Is Crypto Mining Legal in the UAE?
Yes, when it is licensed and carried out in an approved location. The UAE hosts large scale mining operations, but authorities have fined people for mining in homes, farms and other unapproved sites because of power use and safety risks. To mine legally:
- Hold a trade license that covers digital asset mining or mining facility operation
- Run machines in a licensed data centre, industrial unit or hosting facility, not in residential or agricultural premises
- Have an electricity supply contract that allows high, continuous loads
- Keep records of where equipment is located and who controls it
Mining your own coins is generally a commercial activity, not a regulated financial service. Trading, exchanging or holding crypto for customers is different and needs a regulator’s approval.
Crypto Business Activities in RAK DAO
| Activity Type | What It Covers | Who It Suits |
|---|---|---|
| Proprietary crypto mining | Mining digital assets for your own account | Mining companies and investors |
| Mining facility operator | Running a site that houses mining machines | Data centre and hosting firms |
| Crypto mining hosting | Hosting third party miners for a fee | Hosting providers |
| Mining equipment trading | Buying and selling ASICs, GPUs and parts | Hardware traders |
| Blockchain and Web3 development | Smart contracts, dApps, protocols | Blockchain startups |
| DAO Association | Token governed, non profit association | DAOs and communities |
| Digital asset consultancy | Advisory and technical consulting | Consultants |
Activity names on Innovation City’s list may differ slightly, so confirm the exact wording and scope in writing before you apply. Many founders combine mining with equipment trading or blockchain development on one license.
What RAK DAO Can and Cannot License
Innovation City issues commercial licenses, not financial services authorisation. That matters for crypto:
- Can license: mining, hosting, blockchain development, Web3 products, DAOs, consultancy and other non regulated digital asset activities
- Cannot authorise on its own: exchanges, brokerage, custody, lending or other regulated virtual asset services
For regulated activities, you need approval from the relevant regulator. In Ras Al Khaimah and most of the UAE outside Dubai and the financial free zones, this now falls to the federal Capital Market Authority, which replaced the Securities and Commodities Authority in 2026. In Dubai, the Virtual Assets Regulatory Authority (VARA) regulates virtual asset service providers. See our guides on VARA regulations in the UAE and the main cryptocurrency license in Dubai.
RAK DAO vs Other Crypto Locations
| Factor | RAK DAO (Innovation City) | Dubai Free Zones (VARA) | DIFC or ADGM |
|---|---|---|---|
| Best for | Mining, Web3, DAOs, blockchain | Exchanges and retail VASPs | Institutional crypto and funds |
| Regulated activities | Need a separate regulator | VARA licence | DFSA or FSRA licence |
| Entry cost | Low | Medium to high | High |
| Mining friendly | Yes, with an approved site | Limited | Not typical |
Compare our guides on a crypto license in DMCC, a crypto license in IFZA and a crypto license in DIFC. For mining from Dubai, see opening a crypto mining firm in Dubai.
How to Set Up a Crypto Mining Firm in RAK DAO: Step by Step
- Define your model: proprietary mining, hosting, equipment trading or a mix.
- Choose your activities and confirm mining is covered in writing.
- Pick a package and legal entity, such as an FZ LLC, branch or DAO Association.
- Apply online through Innovation City’s company formation portal with passports and shareholder details.
- Complete KYC and source of funds checks.
- Receive your license and establishment card.
- Secure a mining site: a hosting contract with a licensed data centre, or an industrial unit with a suitable power supply.
- Import equipment with invoices and customs declarations.
- Apply for investor and employee visas.
- Open a corporate bank account and set up crypto to fiat conversion through a licensed provider.
Company licensing often takes one to two weeks once documents are complete. Banking and site setup usually take longer.
Documents Required
- Passport copies and photos of shareholders and managers
- Proof of residential address
- Business plan describing mining capacity and power needs
- Source of funds and source of wealth evidence
- Corporate documents for company shareholders
- Hosting agreement or industrial lease, once secured
- Equipment purchase invoices
Power, Cooling and Hosting
Electricity is the biggest cost in crypto mining. Before buying machines:
- Get a written power quote from your hosting provider or utility, including the rate per kWh and any demand charges
- Plan for heat: UAE summers push cooling costs up, so look at immersion or hydro cooling
- Check uptime terms, maintenance response times and insurance in hosting contracts
- Size your site for growth, since adding power later can take months
Hosting with an established provider is usually faster than building your own facility. Larger operators sometimes lease industrial land through RAKEZ for a dedicated mining farm.
Cost of Setting Up a Crypto Mining Firm in RAK DAO
The figures below are approximate. Package prices are Innovation City’s published starting rates at the time of writing, and other costs are market estimates. Always confirm before you budget.
| Cost Item | Approximate Cost (AED) |
|---|---|
| License package (no visa to multi visa) | From 6,600 to 22,550 per year |
| Extra visas | 3,500 to 5,000 each |
| Premium activities | Additional fees may apply |
| ASIC miners | 10,000 to 40,000+ per machine |
| Hosting fees | Usually charged per kWh or per machine each month |
| Own facility setup | 500,000 to several million |
| Accounting, audit and tax filing | 5,000 to 25,000 per year |
| Small hosted mining setup | 100,000 to 500,000+, mostly hardware |
For wider Ras Al Khaimah costs, see how to get a trade license in Ras Al Khaimah.
Banking and Corporate Crypto Accounts
Banking is often the hardest step for crypto companies. To improve your chances:
- Prepare a clear description of your mining model and expected revenue
- Show source of funds and source of wealth for every shareholder
- Use licensed exchanges or brokers to convert mined coins to fiat, and keep full records
- Approach banks that work with the zone, such as RAKBANK. See our guide to RAKBANK business account opening
Our bank account opening team can prepare your file.
Tax for RAK DAO Crypto Mining Companies
- Corporate tax: 9% applies to taxable profit above AED 375,000. A free zone company may pay 0% on qualifying income if it meets the conditions, but mining income should be reviewed carefully. See our corporate tax services.
- VAT: the UAE exempts transfers and conversions of virtual assets from VAT, but hosting fees, equipment sales and services may be taxable at 5%. Check with the Federal Tax Authority or our VAT and tax consultancy team.
Common Mistakes to Avoid
- Buying machines before securing a power contract
- Mining from a villa, warehouse or farm without approval
- Assuming a RAK DAO license covers exchange or custody services
- Relying on old RAK DAO price lists
- Weak records of crypto to fiat conversions, which slows banking
Expert Tip From Our Consultants
Lock in power first, then buy hardware. A signed hosting agreement with a fixed rate per kWh gives you a real profit model and makes your bank file stronger. Start with a hosted setup, prove your returns for six to twelve months, then decide whether owning a facility makes sense. Long term investors can also look at the golden visa in Ras Al Khaimah.
Frequently Asked Questions
Is RAK DAO still open for new companies?
Yes. RAK DAO now operates as Innovation City, and new companies apply through the Innovation City portal.
Can I get a crypto mining license in RAK DAO?
Yes. Mining related activities are available, but confirm the exact activity and scope in writing before applying.
How much does it cost to set up a crypto mining company in RAK DAO?
License packages start from about AED 6,600 a year. Hardware, hosting and power are the main costs.
Is crypto mining legal in the UAE?
Yes, when licensed and carried out in an approved data centre or industrial site.
Can a RAK DAO company run a crypto exchange?
Not on the Innovation City license alone. Exchanges need approval from the relevant regulator, such as VARA in Dubai or the federal regulator elsewhere.
Can I open a corporate crypto account for a RAK DAO company?
You can open a corporate bank account and use licensed exchanges for crypto. Approval depends on your business model and source of funds.
Can foreigners own a RAK DAO company?
Yes. Innovation City allows 100% foreign ownership.
Can I set up a DAO in RAK DAO?
Yes. Innovation City offers a DAO Association structure for token governed, non profit organisations.
Start Your RAK DAO Crypto Mining Company With Expert Support
Gulf Corporate Services helps crypto miners, Web3 founders and blockchain startups set up in RAK DAO and across the UAE, from licensing and visas to banking and tax. Speak to our business setup consultants for a free cost estimate.
