PANews reported on October 18 that according to Cointelegraph, RAK DAO, a free economic zone focusing on digital assets in the UAE, plans to introduce a legal framework for decentralized autonomous organizations (DAOs). Law firms NeosLegal and RAK DAO said the new system will be launched and discussed at the DAO Legal Clinic on October 25. Irina Heaver, a partner at NeosLegal, said the framework aims to clarify how DAOs can maintain legal compliance, and she believes it will have a significant impact on the UAE's decentralized governance and the broader Web3 ecosystem.

RAK DAO's announcement states that the new framework will address the legal and governance requirements of DAOs, including the establishment of a legal structure. The legal structure will clarify tax obligations and tax benefits. It will also enable DAOs to have property rights to on-chain and off-chain assets and provide legal protection from personal liability to DAO founders, members, and contributors. The legal framework will also enable DAOs to enter into legally binding contracts and establish guidelines for resolving internal and external disputes. Under the new system, DAOs can be registered in the UAE without actually entering the country. DAOs can be "remotely established" without a physical presence in the UAE.