Innovation City, the UAE’s AI-focused free zone in Ras Al Khaimah, has launched what it describes as the world’s first blockchain-based digital business identity system.

Companies registered in the zone are now issued a cryptographically verifiable, blockchain-native identity built on IOPn’s OPN Chain, according to Gulf News.

The system replaces traditional business licences, which are typically static documents or entries in centralised databases, with a dynamic, on-chain digital identity intended to be continuously verifiable and updated.

The initiative aligns with the UAE government’s broader push towards agentic AI, including its stated target of transitioning 50% of federal services and operations to AI-driven systems within two years.

The digital identity framework supports machine-to-machine interactions and enables automated processing of licences, compliance checks, taxation, and cross-border business verification.

“Today we don’t just register companies, we give them a soul on the blockchain,”

said Paul Dawalibi, CEO of Innovation City.

“For decades business identity has been trapped in paper, PDFs, and fragile databases, slow, opaque, and built for a world that no longer exists. We are ending that era.”

He added that each enterprise in Innovation City would carry a verifiable digital identity designed to function across jurisdictions and systems, particularly in AI-enabled environments.

The system records ownership changes, compliance updates, and verification events on-chain, aiming to improve auditability and reduce reliance on intermediaries.

It also enables real-time verification for regulators, financial institutions, and automated AI systems.

Innovation City intends the infrastructure to reduce fraud risks and support interoperability across global digital systems, while also providing a foundation for AI-driven government and enterprise operations.

Featured image credit: Edited by Fintech News UAE, based on image by zetrum via Magnific