In a powerful statement of its ambitions to become a global crypto capital, the United Arab Emirates has welcomed the launch of a major new Web3-focused investment fund. Dubai-based venture firm Sigma Capital has unveiled a $100 million war chest dedicated to accelerating decentralized finance (DeFi), tokenization, and blockchain infrastructure projects across the UAE and beyond.
This bold move comes as the Gulf nation races to establish itself as the world’s most crypto-friendly jurisdiction. Over the past year, the UAE has rolled out the red carpet for leading digital asset exchanges like Binance, Crypto.com, and OKX, granting them licenses to operate in its financial free zones. The clear regulatory framework and supportive business environment have transformed the UAE into an oasis for crypto entrepreneurs and investors.
Doubling Down on Web3
Sigma Capital’s $100 million fund represents a major doubling down on the UAE’s bet on all things blockchain and Web3. The venture firm plans to deploy this capital across a diverse portfolio of liquid digital tokens and equity stakes in promising startups. By providing vital funding and support, Sigma aims to catalyze the next wave of disruptive decentralized apps and protocols.
The UAE has the potential to become the Silicon Valley of blockchain. We’re excited to back the visionary founders who will build Web3 from our backyard.
Inal Kardanov, Sigma Capital Founding Partner
Focus on DeFi and Tokenization
Two areas of particular interest for Sigma’s new fund are decentralized finance and asset tokenization. DeFi has exploded in popularity in recent years, with Ethereum and other blockchains hosting a vibrant ecosystem of peer-to-peer lending, trading, and yield-generating protocols. Meanwhile, the tokenization of real-world assets like property, commodities, and financial instruments is seen as a multitrillion-dollar opportunity to improve efficiency and liquidity.
- DeFi platforms enable anyone with crypto to access financial services
- Tokenization could unlock trillions in illiquid assets and broaden participation
1/5 🚨 We're thrilled to announce the launch of our $100M fund to invest in the most exciting Web3 opportunities emerging from the UAE and beyond.
— Sigma Capital (@SigmaCap) January 14, 2025
Investing in Infrastructure
In addition to DeFi and tokenization plays, Sigma Capital also plans to back startups building out critical Web3 infrastructure. This includes companies developing layer 1 and layer 2 blockchain platforms, interoperability solutions, decentralized storage networks, oracle services, and more. By strengthening the core infrastructure layer, Sigma hopes to create a solid foundation for Web3 applications to scale to billions of users.
For Web3 to reach its full potential, we need robust, secure, and high-performance infrastructure. That’s a major focus for us.
Inal Kardanov, Sigma Capital
A Magnet for Global Talent
The UAE’s embrace of crypto and Web3 has already made it a magnet for some of the industry’s brightest minds and most ambitious projects. With Sigma Capital’s new $100 million fund, that gravitational pull is only set to intensify. The country’s business-friendly policies, 0% personal income tax, and high quality of life make it an attractive base for entrepreneurs and developers looking to build the future of finance.
We came to Dubai because it offered the best environment for us to pursue our mission. There’s incredible talent and energy here.
Vitalik Buterin, Ethereum Founder
Challenges and Risks
Of course, investing in cutting-edge Web3 technologies is not without its challenges and risks. Many projects are still in their early stages, with unproven business models and untested technology. Regulatory uncertainties also loom large, as governments around the world grapple with how to oversee the explosive growth of crypto and decentralized systems.
- Scaling decentralized networks remains an ongoing challenge
- Crypto’s volatility and complexity pose risks for inexperienced investors
Despite the hurdles, Sigma Capital and the UAE appear undeterred in their ambition to be at the forefront of the Web3 revolution. With deep pockets and a hospitable environment for crypto innovation, the odds may be in their favor. As the $100 million fund gets to work backing a new generation of decentralized projects, the UAE’s star as a global crypto hub looks set to rise even higher.
