The digital assets industry is expanding globally, with blockchain and cryptocurrency-related businesses on the rise. In a new development, Qatar has made a move to attract Web3 developers to establish their operations in the country. The Qatar Financial Centre (QFC) in Doha has launched the ‘Digital Assets Lab’ to facilitate the development, testing, and commercialization of Web3 services. First announced in October 2023, the QFC—an onshore financial and business hub—aims to position Qatar as a key player in the evolving digital economy.

Yousuf Mohamed Al-Jaida, the Chief Executive Officer of the QFC Authority confirmed the development this week.

The QFC has screened and selected 24 participants to spearhead Web3 development through its Digital Assets Lab initiative. Among the cohort are Polygon, Partior, and ALT Realtech, who have been tasked with developing blockchain-based solutions tailored to their respective industries.

“The technologies we aim to develop through the Lab will support our goal of creating a resilient and secure financial sector, fostering a thriving wealth management hub, and positioning Qatar at the forefront of innovation,” Al-Jaida said.

The QFC has also partnered with international organizations, including Google Cloud, The Hashgraph Association, and R3, to provide industry expertise and insights to developers. Additionally, the business development facility offers a range of services for emerging businesses, such as tax support, comprehensive employment standards, immigration services, and data protection regulations, making it an attractive hub for those looking to establish operations in Qatar.

Notably, while Qatar embraces certain aspects of blockchain-based Web3 technology, it maintains a cautious stance toward cryptocurrencies. In January 2020, the Qatar Financial Centre (QFC) Regulatory Authority implemented a ban on all crypto asset services within the Gulf region. As per a recent report by the Doha News, this ban on cryptocurrencies will continue in Qatar for the foreseeable future.

Qatar’s cautious approach toward cryptocurrencies stems from their speculative and volatile nature, as well as the potential risks they pose to financial stability. However, the country is keen to explore blockchain use cases to modernize sectors such as real estate and bonds, according to a report by Doha News.

© Thomson Reuters 2024