Source: news.google.com
He Dubai Multi Commodity Center (DMCC) was founded as a startup in 2003 with 28 member companies. Today, it is one of the world’s leading free zones with more than 21,000 member companies from 180 countries, employing more than 65,000 people.
Headed by Ahmed Bin Sulayem, DMCC Executive Chairman and CEO, in 2022 alone, the company registered more than 3000 companies.
The DMCC recently partnered with SafeGold and Comtech Gold to tokenize gold bars at the UAE facility.
Furthermore, its crypto arm, the DMCC Cryptographic Center—is home to more than 500 cryptocurrency companies, representing the largest concentration of cryptocurrency and blockchain companies in the Middle East and North Africa (MENA) region.
The crypto center partnered with Brinc, a Hong Kong-based global venture capital firm, to provide access to its $150 million accelerator to support Web3 and blockchain technology companies.
The DMCC Crypto Center offers a unique environment that a crypto business needs to be successful:
- Access to capital through global investors
- Local and global talent
- A full suite of cryptographic licenses that increase the ease of doing business
- A network of like-minded companies and entrepreneurs
In a recent conversation, Gulf of YourStory Edition spoke with Belal Jassoma, Head of Business Development, DMCC Crypto Center, who discussed how the company helps Web3 and blockchain companies in the MENA region.
A business administration graduate from the American University of Sharjah, Belal began his career in real estate in 2006 and joined DMCC in 2011.
Edited excerpts from the interview:
YourStory Gulf Edition [YS Gulf]: From real estate to DMCC, how has the segment evolved and grown?
bela jassoma [BJ]: Since the time I joined DMCC, we have grown more and more. The average number of new businesses we used to attract would be 1,000 to 1,500. In 2021 we registered 2,500 companies; it was a record. This year we broke that record with more than 3,049 companies. It is unprecedented.
The reason we’re growing is because of our diversity and our focus on growing ecosystems, creating industry-specific ecosystems.
Anyone can issue a license or registration, but those that create a sustained competitive advantage for startups and businesses to appreciate and stick with help with growth.
YS Gulf: How do you maintain this steady growth?
BJ: It’s always about looking at what’s next. It’s about being early to recognize the potential of an industry and quickly organizing what the industry needs: the environment new businesses need and what will help them flourish and grow.
YS Gulf: What are the sectors you have seen grow since 2011?
BJ: DMCC’s main goal was to develop trade, especially commodity trading. Most of the companies were in the commodity segment. But we saw a lot of potential and opportunity in the technology sector.
To build a diverse ecosystem, we added a focus on technology, as we can’t have commodity companies working in silos. We need all of you to have a comprehensive, self-sufficient community and ecosystem, and one of those things is expanding opportunity.
We partnered with AstroLabs in 2013 to launch and scale startups and DMCC registered companies. Starting with a program every two months to a dedicated space that AstroLabs took away from us, today we have one of the most successful and attractive technology centers in the region.
YS Gulf – Dubai is now becoming synonymous with Web3, blockchain, crypto, and the Metaverse. How is DMCC working to achieve that?
BJ: We have many projects that we are defending. But our main role is to serve as a bridge between the main companies and merchants. More than 50% of our companies are in the trading business.
We were early to recognize the potential of blockchain and crypto back in 2016. It has the potential to grow commerce and take it to the next level, which is our mandate.
The idea is to connect blockchain companies with commercial companies to see more adoption and build more projects in the segment.
YS Gulf: Tell us about the DMCC Crypto Center. How has it grown and developed?
BJ: In the United Arab Emirates, we were the first to create a home for cryptocurrency and blockchain companies. We created a framework and licenses for cryptocurrency trading and DLT services, and no one else offered them in the region. Now we have expanded it to the NFT market.
Today, there is more blockchain and Web3 instead of cryptocurrency and mining. We have seen the demand grow. In 2020, we wanted to build a dedicated enterprise hub in that space, and we opened the DMCC Crypto Center in 2021.
YS Gulf: The sector is in its infancy and there are cases like the FTX accident. How does this impact startups in the sector and specifically in the center?
BJ: Taking into account that a large part of our companies are in the commercial segment, we are closely monitoring the [FTX] history and the impact it can cause.
However, from day one, the focus of the DMCC Crypto Center has been for member companies to build projects on Web3 and blockchain technologies.
There are many exciting projects in the pipeline, including Metaverse gaming, educational technology in the metaverse, and music streaming on the blockchain. We are also focusing on blockchain technology for sustainability and healthcare.
This is business as usual for us, despite what is happening in the market.
YS Gulf: How do you mitigate or fix failures?
BJ: If you look at the statistics, about 70-80% of startups don’t make it past the fourth year. So there is nothing wrong with trying. I mean, it’s a new space. Unless you try, you will not see success.
Many projects start small. A good example is tokenization. We have companies looking to tokenize real estate. Also, many companies have tokenized gold and assets and physical assets to upgrade those assets. We can get more ownership opportunities for them.
We also have an in-house team, a dedicated team of crypto experts, who support these companies and look at the business cases that come our way and what can work.
YS Gulf: How can companies from different parts of the world find a space in the DMCC Crypto Center?
BJ: About 17% of the 500 companies we have in the crypto center are from India. It is the highest nationality we have in the center.
We are also expanding our international presence through representative offices, which will have local staff. We want to explore and understand market opportunities; the benefits of setting up an office and having someone who speaks the local language and works in that time zone and supports them locally.
More importantly, our process is 100% digital and paperless, making it easy for companies, especially start-ups, to set up business in Dubai.
Also, the speed of the transaction is important. Companies can set up their business in their country without even having to come here, and they can come to Dubai when they are up and running and ready to do business.
YS Gulf: What are the benefits?
BJ: First, access to finance. We have accelerator programs and incubators running all the time. In addition, we also have a $150 million fund created by Brinc.
For the Metaverse, we have access to local and global talent, both for crypto and tech.
We also run regular networking and knowledge-sharing programs and events, not limited to the cryptocurrency and blockchain industry, but also for DMCC’s 22,000 member companies.
We also play a role in matching peers and creating opportunities for collaboration. Last but not least, we have many industry-specific ecosystems offering dedicated coworking spaces.
Crypto and Web3 are one of them. We have a game center for gaming and e-sports companies and a sports and wellness center. We also have a dedicated space for AstroLabs. Soon, we are going to launch a dedicated space for eCommerce startups.
YS Gulf: How have you seen the market evolve for startups?
BJ: With all the ups and downs, there will always be new companies that get established. When big companies lay off good talent, these skilled professionals continue to deliver and do business and build companies. They join us as startups and start new businesses.
In general, we have seen growth in all sectors. For example, the renewable energy sector arouses more interest when energy prices rise. We have seen more family offices set up here.
Also, due to the regulatory environment, the benefits Dubai offers and confidence in the security and stability of their office, we have seen more holding companies using Dubai as a base.
YS Gulf: How do you see the Web3 and Metaverse ecosystem growing and evolving?
BJ: In our opinion, the future of technology is blockchain. We are seeing more blockchain innovations in Dubai and we are witnessing a rise of more innovative technologies.
The important thing is to be aware of that and measure what these companies need: the regulatory environment and the financial incentives they need to prosper.
YS Gulf: What does 2023 hold for DMCC and DMCC Crypto Center?
BJ: Various initiatives and projects are emerging for DMCC crypto and gaming hubs. We have expansion plans as the demand is growing. We will also focus on further incubation, acceleration and funding for startups.
In fact, we are focusing heavily on member education and engagement, especially in the blockchain and Web3 space. Our goal is to strengthen and improve our platforms and ecosystems to make it better and easier for our members to scale their operations. More importantly, we want to encourage mainstream blockchain adoption.
YS Gulf: What advice would you give to startup founders?
BJ: The first thing that comes to my mind is to do proper research. Always think about exit strategies. It doesn’t have to be an exit from the business, but rather your expansion opportunity and exit plans in case things don’t work out. Get ready for it.