Free Zone · Ras Al Khaimah

Business Setup in Innovation City — RAK’s AI-Powered Tech Free Zone

Innovation City (formerly RAK DAO) licenses AI, Web3, gaming, robotics and healthtech companies in Ras Al Khaimah. 100% foreign ownership, up to 10 activities per licence, UAE residency visas — and company setup from AED 9,900.

4.9 on Google · 500+ companies · 60+ countries · Est. 2022
RAK DAO Is Now Innovation City

Same Free Zone, Much Bigger Scope

Ras Al Khaimah Digital Assets Oasis (RAK DAO) launched in 2023 as the world’s first free zone dedicated to digital-asset and Web3 companies. On 18 September 2025 the Ras Al Khaimah government relaunched it as Innovation City (INC), keeping its Web3 foundation and adding artificial intelligence, gaming & iGaming, robotics and healthtech as core sectors.

Innovation City bills itself as the world’s first AI-powered free zone: company registration, licensing and much of the regulatory paperwork run through automated systems rather than manual queues. The authority is chaired by Sheikh Mohammed bin Humaid Al Qasimi and led by CEO Paul Dawalibi.

Already licensed under RAK DAO? Your company carries on under the Innovation City name — there is no need to re-incorporate. We can help update your documents, bank KYC and renewals so everything matches the new branding.

Why Choose This

Why Tech Founders Choose Innovation City

Licensing in days, not weeks

AI-assisted processing means licences are typically issued within a few working days once documents are complete — among the fastest in the UAE.

Lower costs than Dubai

A shared desk is included in every package, and RAK’s lower cost base keeps setup and renewals below most Dubai tech and crypto free zones.

10 activities on one licence

Most packages include up to 10 standard or custom activities, so an AI studio can also license software, consulting and e-commerce.

DAO-ready legal structures

Innovation City’s DAO Association Regulations let token-governed communities hold a legal entity, sign contracts and open bank accounts.

A real community hub

Every package includes access to Innovation HQ: coworking desks, an event space, a content creator studio and free refreshments.

Normal-life infrastructure

UAE residency visas, Emirates ID, corporate banking and 0% personal income tax — an hour from Dubai, with RAK’s lower cost of living.

Sectors

What You Can License in Innovation City

Five core pillars, plus a growing list of adjacent technology sectors.

Artificial intelligence

AI development, machine learning, AI SaaS products, data services and AI consultancy.

Web3 & digital assets

Blockchain development, DAOs, NFT platforms, metaverse projects and non-regulated digital-asset services.

Gaming & iGaming

Game studios, engines, esports and gaming tech. Regulated gaming activity needs separate federal approval.

Robotics

Robotics R&D, automation software, drones and hardware prototyping.

Healthtech & digital health

Health apps, medtech software and health data platforms. Delivering care requires a health-authority licence.

Also covered

Creator economy, cybersecurity, edtech, climate tech, transportation tech, SaaS and IT consulting.

Pricing

Innovation City Setup from AED 9,900

Your exact price depends on how many visas you need, which activities you choose and the type of desk or office. Tell us about your business and we’ll send one fixed, all-in quote — licence, visas, Emirates ID and bank account support, with no hidden fees.

Chris Elliott, Founder & CEO Carlos, Innovation City expert

Want expert advice first? Talk to Chris and Carlos

Not sure Innovation City is the right fit, which activities to choose or how many visas you need? We can always set up a call with Carlos, our Innovation City expert, together with Chris — so you get clear, specialist answers before you commit to anything.

Watch

Innovation City Explained on Video

The video opens at 12:31, the segment covering this free zone.

Watch on YouTube · More free zone videos

The Details

Company Structures, Rules & Requirements

Legal entity types

Company limited by shares (Limited or Incorporated) is the standard choice for startups raising investment — shareholder liability is capped at their investment. Company limited by guarantee suits non-profits, associations and social enterprises. A branch lets an existing overseas company operate in the UAE under its parent. Token-governed projects can register as a DAO association under the zone’s dedicated DAO regulations.

What Innovation City does not cover on its own

The free zone licenses technology development, software platforms, R&D and innovation-driven services, most of which are not federally regulated. Some models need an extra regulator: virtual-asset exchange, custody and brokerage (SCA, or VARA in Dubai), securities and payments, delivering healthcare, and regulated gaming. We map your business model to the right authority before you spend anything.

Documents you’ll need

For individual shareholders: passport copies, a passport-style photo, proof of residential address, and your UAE visa or entry stamp if you are already in the country. Some activities also need a short business plan. Corporate shareholders need their certificate of incorporation, articles and a board resolution, legalised or attested for use in the UAE. Innovation City’s own AI Business Planner can help draft the plan — we review it before submission.

Is Innovation City right for you?

It’s a strong fit for AI, SaaS, Web3, gaming and other tech companies that want low costs, fast setup and a genuine founder community. If you trade physical goods, need a warehouse, or want a Dubai address for client-facing reasons, IFZA Dubai or a mainland company may suit you better. Compare every option on our UAE zones overview or run the numbers in the free Setup Cost Calculator — as consultants for all major zones, we recommend neutrally.

How It Works

Your Innovation City Setup in 4 Steps

STEP 01

Free consultation

We confirm Innovation City fits your activities, budget and visa needs — honestly, against every alternative.

STEP 02

Package & activities

We choose the right package, select your activities and reserve your company name.

STEP 03

Licence issued

We prepare and submit your documents. Once approved and paid, your licence and incorporation documents follow, typically within days.

STEP 04

Visas & bank account

Residency visas, Emirates ID, corporate banking and tax registration — one team, end to end.

FAQ

Innovation City: Common Questions

Is Innovation City the same as RAK DAO?

Yes. RAK Digital Assets Oasis (RAK DAO) was relaunched as Innovation City in September 2025. It kept its Web3 and digital-asset focus and added AI, gaming, robotics and healthtech. Existing RAK DAO companies continue under the new name.

Can I speak to an Innovation City expert before I decide?

Yes. We can always set up a call with Carlos, our Innovation City expert, together with Chris Elliott. You get specialist advice on activities, visas and structure before committing to anything.

How much does it cost to set up a company in Innovation City?

Company setup with us starts from AED 9,900. The final figure depends on your visas, activities and office type, so we give you one fixed, all-in quote after a short call — no hidden fees.

How long does company formation take?

Thanks to its AI-assisted processing, Innovation City typically issues licences within a few working days once documents are complete. Residency visas and bank accounts take longer; we plan the full timeline with you.

How many visas can I get?

It depends on the package: there are visa-free options for founders who don’t need residency, and packages with room for up to four visas. Larger teams can upgrade their office space for a higher quota — we match the package to your team.

Can a DAO get legal status here?

Yes. Innovation City has dedicated DAO Association Regulations — among the first anywhere — that let a decentralised community hold a legal entity, sign contracts and open a bank account. We structure it case by case.

Do I need VARA or SCA approval too?

Only for regulated virtual-asset activities such as exchange, custody or brokerage. Development, consulting and many Web3 services fit Innovation City directly. We confirm your scope first.

Can foreigners own 100% of an Innovation City company?

Yes. Innovation City allows 100% foreign ownership with no local sponsor or partner, and you can have multiple shareholders on most packages.

Do I have to live or work in Ras Al Khaimah?

No. Your licence and visa are issued through Innovation City, but you can live anywhere in the UAE — many founders live in Dubai. A shared desk at Innovation HQ is included in every package.

Can I open a UAE bank account with an Innovation City licence?

Yes. Innovation City companies bank with UAE banks and digital banks. Web3 businesses face stricter checks, so we prepare your file and introduce you to banks that accept your activity.

What tax does an Innovation City company pay?

There is no personal income tax in the UAE. Companies are subject to UAE corporate tax (0% on taxable profit up to AED 375,000, then 9%); qualifying free zone income can be taxed at 0% if the conditions are met, and VAT applies if you pass the registration threshold. Our accounting & tax team handles registration and filings.

Chris Elliott, Founder & CEO of Emirates Business Setup
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