Innovation City in Ras Al Khaimah has been named the world's first free zone fully powered by artificial intelligence (AI), marking a major shift in how business operations and licensing are handled in the UAE. The AI-driven system replaces traditional manual administrative procedures with automated tools, improving efficiency and speeding up processes.

Paul Dawalibi, CEO of Innovation City, stated that the initiative began with a detailed analysis of customer interactions and internal workflows to determine where artificial intelligence could deliver the greatest impact.“We examined each step to identify where technology could replace or enhance human tasks to increase speed, scalability, and cost efficiency,” he said.

Currently, AI supports key operations in the free zone, with plans to extend automation to additional services. Future tools will include AI-powered digital assistants to help entrepreneurs set up and manage businesses more easily.

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“This is not only about making our own operations smarter,” Dawalibi said.“We want to empower business owners with AI tools that make starting and managing a company far easier.”

Innovation City's broader goal is to serve as a global hub for technology and innovation, focusing on five main industries: Web3, digital assets, AI gaming and iGaming, robotics, and digital health. These sectors were chosen for their growth potential and increasing relevance in global investment and research.

“These are among the most active and fast-moving areas in technology,” Dawalibi explained.“We are building an environment that supports their development while addressing the specific needs and challenges of companies operating in these fields.”

Centre for innovation-driven business

The transition from Ras Al Khaimah Digital Assets Oasis (RAK DAO) to Innovation City reflects a wider strategy to position Ras Al Khaimah as a centre for innovation-driven business. Dawalibi said the rebrand was motivated by the emirate's growing global profile and the opportunity to create a more diversified economic ecosystem.“Ras Al Khaimah needed a free zone dedicated to technology and innovation, rather than one focused on a single trend,” he said.

Beyond licensing, the free zone aims to strengthen support for startups through access to networks and potential clients.“One of the biggest challenges for startups is finding their first customer,” Dawalibi said.“We're helping connect them with established industries in RAK that can adopt their technologies.”

The free zone also plans to attract companies from major international markets, including China, Russia, and India, offering a regulated and tax-efficient base for expansion into global markets. Dawalibi said the approach is designed to provide businesses with a stable operating environment, clear compliance frameworks, and minimal barriers to entry.

Innovation City is expected to play an important role in Ras Al Khaimah's ongoing economic diversification. While the emirate has long been known for its industrial base, the development of high-tech sectors such as AI, Web3, robotics, and health technology is seen as a way to create new sources of growth and skilled employment.

“These industries have the potential to generate high-value jobs and attract foreign investment,” Dawalibi said.“They can help position Ras Al Khaimah more prominently within the UAE's broader innovation landscape.”

By aligning with the emirate's long-term vision, Innovation City is expected to complement existing sectors and contribute to a more sustainable, knowledge-based economy.“Tourism will remain a key pillar,” Dawalibi added.“But to ensure long-term stability, the economy also needs developers, engineers, and innovators who live and work here. That foundation will help shape Ras Al Khaimah's future for decades to come.”

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