Animoca Brands, a Hong Kong-based company specializing in Web3 technologies, has announced the opening of its first office in the Middle East located in Dubai. This move aims to provide crucial support for startups in the United Arab Emirates (UAE), focusing on addressing gaps in financing, mentorship, and market access for early-stage businesses.

The company’s strategy includes not only investment but also ecosystem advisory and infrastructure support for both new and established cryptocurrency companies in the UAE. Animoca Brands plans to work alongside corporate entities, government bodies, and regulators to enhance the real-world applications of Web3 technologies.

With over 540 global investments, Animoca is known for its significant contributions to the gaming and blockchain sectors, including its involvement with Axie Infinity’s developer, Sky Mavis. The decision to establish operations in the UAE reflects the country’s growing prominence as a hub for Web3 investment, with the UAE securing 36% of all startup deals in the MENA region in 2024, despite representing only about 1% of the region’s population.

Although Saudi Arabia led in total funding with $750 million, the UAE followed closely with $619 million, contributing significantly to the region’s overall startup investments of $1.9 billion. The UAE has a dynamic Web3 ecosystem, hosting numerous companies focused on blockchain, decentralized finance, and metaverse technologies, aligning with Animoca’s areas of expertise.

Animoca’s entry into Dubai is strategically timed, taking advantage of the emirate’s reputation as a crypto-friendly jurisdiction with regulatory frameworks designed to attract tech startups. The UAE has initiated policy reforms, including five-year residency visas for entrepreneurs and streamlined business registration processes, fostering a conducive environment for Web3 companies.

Additionally, Dubai benefits from hosting 427 venture capital funds and numerous family offices managing over $1.2 trillion in assets. Many of these entities are based in the Dubai International Financial Centre (DIFC), offering Animoca access to potential co-investors and limited partners for its planned funding initiatives. The firm’s timing coincides with a 58% increase in investor participation in the UAE during the first half of 2024 compared to the previous year, indicating a growing institutional interest in the market despite global economic challenges.