How Dubai is Leading the Way in Blockchain Technology

Dubai has successfully built its image as a technological hub in the MEA (Middle East and Africa) region. Until recently, it was synonymous with an extravagant lifestyle, glittering gold souks, and a bustling tourism destination. While it retains these imprints, it has carefully nurtured an ambitious digitalization plan that bears results.?

Future-readiness

It is undergoing rapid digitalization. Businesses and government entities are adapting to new ways of functioning. Small and medium-sized enterprises are increasingly adopting digital marketing strategies. Disruptive technologies like artificial intelligence(AI), virtual reality (VR), the internet of things (IoT), and automation fit into Dubai's futuristic visions.??

Launched in 2009, "The Abu Dhabi Economic Vision 2030" aimed at diversification of UAE's economy using ICT as an enabler and moving towards a knowledge-based economy.?

UAE is bringing convergence of its sectoral visions, creating a perfect harmony between disparate technologies for a unified aim. These different aspirations are the driving force behind the various strategies it defines to meet these goals with well-defined timelines.

The vision and strategy

Blockchain is on the ambitious list. It has been exploring different ways to harness the technology. It launched the Dubai Blockchain Strategy- a joint effort between the Digital Dubai Office and the Dubai Future Foundation to explore cutting-edge technological advancements. The strategy envisions creating seamless, safe, and efficient experiences within Dubai.

Reports suggest that the momentum with which established economies have adopted blockchain, setting aside apprehensions about cryptocurrency, there's a strong probability that by 2030, blockchain technology will contribute an additional 2 trillion dollars. Taking a cue from the leading economies US and Japan, that top the list of nations that accept and implement cryptocurrency, Dubai is not far behind in its adoption.?

As blockchain is making inroads into the digital economy of the UAE, it's worthwhile to know where these technologies fit in the discourse. It has laid out an ambitious plan called the UAE Digital Economy Strategy, which proposes increasing the digital economy's contribution to the GDP from 9.7 to 19.4 over ten years.?

Blockchain- a cog in the digital economy?

What's the buzz about the digital economy? Dubai is zealously pursuing three distinguishing features of a digital economy: infrastructure, business, and commerce, leveraging and putting technology at its core.

After announcing the blockchain strategy in 2018, Dubai laid the foundation of the blockchain council.?

The strategy itself has three clearly defined aims-

• make government efficient,?
• to create an industry around blockchain and
• Claim a leadership position globally.?

By 2021, UAE's government institutions were carrying out half of all transactions built on blockchain technologies.?

Bolstered by blockchain predictions, Dubai is embracing it with an eye on the future. It even has its blockchain center. The blockchain summit held in March is an exciting event that witnesses the coming together of industry leaders.?

Few use cases and emerging scenarios

It has implemented blockchain use cases in real estate, healthcare, trade, transport, security, and education sectors. Let's look at some of the areas blockchain is making inroads.?

Finance

Blockchain technology is realigning the financial sector. The Dubai International Financial Centre (DIFC) launched a blockchain-based platform called 'FinTech Hive' in 2017 to encourage the development of blockchain-based financial solutions. The program is designed to bring together startups, financial institutions, and regulators to drive innovation in the financial services sector, a key initiative for the growth of the fintech industry in Dubai and the MENA region. By bringing together important stakeholders, the program aims to foster collaboration and innovation in the sector.

Education

Blockchain technology is revolutionizing the educational setup in Dubai. Some of the most famous universities and schools are handing over digitally accredited degrees to their students.

Healthcare

Taking a leaf out of Estonia's success in the health sector, which became the first country to use blockchain in healthcare, and claims to have 99% of medical services information digitized, Dubai has taken the tried and tested path. Blockchain's robust mechanism to prevent data theft is a prime reason for its adoption.?

Governance

Blockchain eliminates numerous copies of a digital asset, as each block is linked to the previous block with a time stamp, bringing security and efficiency. Dubai's Land Department has been implementing blockchain to enable faster property-related transactions with enhanced efficiency and greater transparency. It is being used in Ownership verification in DLD Mobile Applications, Property sales by developers, and Smart Leasing Processes.

Crypto-currency in Dubai

Though the central bank of UAE doesn't recognize cryptocurrencies as legal tender, crypto-assets can be owned and exchanged on the many platforms available. BitOasis became the region's first cryptocurrency platform operating in the MENA region. Other cryptocurrency exchanges like?Coinbase, Huobi, and Kraken operate in Dubai.?Dubai's?zero-corporate tax policies?help entrepreneurs. In taxation laws, it is treated as any other property and does not attract taxes, just like zero percent taxes on capital gains, business income, and salary.

Exploring possibilities

The range of possibilities blockchain offers to refine processes and address security concerns is immense in the IT industry. Dubai already has a sizeable presence of companies offering customized software solutions and helping in enterprises' digital transformation journey. Areas like supply chain management, data security, identity verification, and cloud computing are seeing an uptick in the use of technology.

The road ahead

Undoubtedly, Dubai is on the road to establishing its cherished goal of positioning itself as the global leader in blockchain adoption and implementation. As technology changes, we will see many more use cases. After all, one must remember the underlying twin aim of Dubai- to make it the happiest city in the world besides being the smartest.