The past few years have seen the UAE struggle in equity markets. This, along with plummeting oil prices have severely affected Initial Public Offerings. Thus, for domestic companies, raising funds has become a huge challenge.

To increase financing in capital markets, the UAE government will enable domestic companies to
raise funds by engaging in commodity based ICOs.

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Cryptocurrencies, while not classified as legal tender, are considered commodities by the government of Abu Dhabi.

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UAE securities market watchdog chief Omar Saif al-Zaabi said:

The board of the Emirates Securities & Commodities Authority [ESCA] has approved considering ICOs as securities.
As per our plan, we should have regulations on the ground in the first half of 2019.

If approved by UAE's prime minister, the new law will take effect in 2019.

Considering that the Middle east is usually not acceptable of the world's various regulations, this is a small yet significant win for the world of cryptocurrency and Bitcoin in particular.

However, my worry is that once ICOs assuage the damage done by the existing economical problems, will they still be entertained by the economy?

The reason I have asked this is because ICOs have still not been established as a part of the core of any economy.

Reference link- https://www.ccn.com/united-arab-emirates-to-approve-icos-as-securities-in-2019-to-boost-corporate-funding/

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