Dubai's DMCC to open blockchain-backed Crypto Tower in boost to city's tech ambitions

Blockchain will be used for ownership, on-chain voting and smart contracts to promote transparency

An artist's impression of the DMCC's Crypto Tower to be built at Jumeirah Lakes Towers in Dubai, expected to be completed in early 2027. Photo: DMCC

The Dubai Multi Commodities Centre and Reit Development have unveiled plans for a new building that will demonstrate the practical use of blockchain, as they seek to boost the emirate's position in adopting new technology.

The 17-storey Crypto Tower, which will be built at the DMCC's flagship Jumeirah Lakes Towers, is intended to house its stable of blockchain, decentralised finance and Web3 companies, a joint statement on Wednesday said.

It will use blockchain for real estate, and tenant management and ownership, on-chain voting and smart contracts, the DMCC said, reflecting the emirate's championing of secure emerging technology.

The land for the project was bought in December 2021 for Dh16.5 million ($4.5 million), part of the development's transactions and operational details recorded on the blockchain, "with full transparency and real-time access", the DMCC website says.

Construction is expected to be completed within the first quarter of 2027, with operations starting "shortly thereafter", Reit and the DMCC said.

Crypto Tower will provide about 14,000 square metres of leasable space on nine floors and will feature dedicated levels for incubators, and venture capital and investment firms, in addition to innovation spaces for artificial intelligence, currently the world's hottest technology, the statement added.

“The Crypto Tower is a pioneering development that sits at the interface of blockchain, Web3 and real estate ... [that will] provide a range of cutting-edge facilities and services for the benefit of our members," said Ahmed bin Sulayem, executive chairman and chief executive of the DMCC.

"The launch of Crypto Tower is both a real-world demonstration of the future of Web3, where transparency and ownership are ensured by blockchain technology, as well as a statement of our intent as we continue to consolidate Dubai’s position as the world’s leading innovation hub.”

Blockchain is the underlying technology behind cryptocurrencies and decentralised finance, which is generally considered to be a safer way to conduct transactions and one that could end up replacing middlemen, such as brokers and banks, in the financial system.

The UAE has taken several steps to integrate blockchain into the economy, government and society as part of efforts to develop the economy.

Blockchain, in particular, has received special focus, with a number of government projects established. Among the earliest programmes were the Emirates Blockchain Strategy 2021, the Dubai Blockchain Strategy and the formation of the Global Blockchain Council.

Meanwhile, the UAE aims to establish itself as one of the next high-growth crypto capitals of the world, with institutional investors, hedge funds and big financial companies moving in and setting up in the country.

Investors in the Emirates realised capital gains worth $204 million from cryptocurrency investments in 2023, data from blockchain data company Chainalysis found.

“By combining blockchain technology with real-world construction in Dubai's DMCC, we're creating a physical tower that serves as a central hub for the crypto community," said Brenda Stratton, communications director of Dubai-based Reit Development. "Every expense is on-chain, setting a new standard for transparency in the industry."