For decades, the United Arab Emirates (UAE) has been synonymous with oil and luxury tourism. Yet in the next 10 years, the UAE may surpass the technological prominence of Silicon Valley. In the Middle East, Dubai already has a long tradition of leading digital innovation. Now, for the first time, Dubai will be pioneering the application of blockchain technology in an effort to make it the first blockchain-powered government in the world.
So, before we dive into the Emirates Blockchain Strategy 2021, let’s understand what blockchain technology is.
What is Blockchain?
The term Blockchain itself partially describes the technology itself. Blockchain is a chain of blocks. And not just a chain. It maintains a strict sequence. What are these blocks and what kind of chain? Blocks are data on transactions, transactions, and contracts within the system, presented in cryptographic form. Initially, the blockchain was (and still remains) the basis of the Bitcoin cryptocurrency. All blocks are arranged in a chain, that is, they are interconnected. To write a new block, it is necessary to sequentially read information about old blocks.
All data in the blockchain is accumulated and form a constantly updated database. It is not possible to remove anything from this database or to replace a block. And it is limitless – an infinite number of transactions can be written there. This is one of the main features of the blockchain.
The power of blockchain technology is so deep that it can simplify complex tasks and enhance transparency to solve many of the problems that have beset economic systems. The UAE has better understood the technology’s profound implications for public data repository and digital security of national documents.
The United Arab Emirates and Blockchain
Apart from the fact that the move shows how the UAE is adopting innovative technology, blockchain offers a wealth of benefits that work towards favoring ease of doing business. The pillars of the initiative have a critical eye for business, with them being “citizen and resident happiness, government efficiency, advanced legislation, and global entrepreneurship.” While the move comes out of the public sector, it is apparent that the private sector will be a direct beneficiary. Since the information and data on a blockchain cannot be altered, the government hopes that the technology will improve the cybersecurity of all digital transactions as well as the documents generated through them.
The UAE 2021 Blockchain Strategy
The Emirates-Blockchain Strategy for 2021 is an initiative launched by the Emirates Government in 2018 to take advantage of blockchain technology. “2021” in the name comes from the deadline set by the UAE government to place half of all government transactions in the blockchain. The goal is to move 50% of government transactions onto a blockchain platform by 2021, which will save an estimated AED 11 billion in transaction and document costs, 398 million printed documents annually, and 77 million working hours annually.
While this move shows that imaginative innovations are being presented in the UAE, blockchain offers numerous advantages that make it simpler to work together. The activity depends on a basic perspective on business, that is, the satisfaction of residents and inhabitants, the viability of government, propelled enactment, and worldwide enterprise.
Dubai Blockchain Strategy
The adoption of blockchain technology is not limited to a nationwide effort through Emirates Blockchain Strategy 2021. The Emirate of Dubai is carrying out a separate initiative in the form of Blockchain Dubai. Upon successful application, it will make Dubai “the first blockchain-powered government” and serve as a future economic driver. A collaboration between the Dubai Future Foundation and the Smart Dubai office, the initiative aims to make H.H. Sheikh Mohammed bin Rashid Al Maktoum’s vision of “Dubai will be the first city fully powered by Blockchain by 2020”, and the happiest on the planet come to fruition. The initiative focused on industry creation, international leadership, and government efficiency.
One of the accomplices of this activity, the Dubai Future Foundation, additionally has a Blockchain Board that attempts to improve the security and unwavering quality of all exchanges on the stage, both inside and outside the monetary framework. They additionally examine, talk about the present and future projects and compose exchanges through the blockchain stage.
The 46 individuals, forming this foundation, are a blend of government offices and blockchain innovation organizations, free zones, driving emirates banks, and multinationals. The creation of the committee outlines the nearby collaboration between general society and private segments in execution and consistent improvement.
Investment in Startups of the Future
The Emirates is now a breeding ground for a rapidly developing fintech scene, and thus a sought-after destination for expanding the fintech industry. The trend encapsulates blockchain firms, keen on regulators that seem to at least appreciate the impact that blockchain technology may provide once it hits its stride. Fintech startups are expected to attract $2 billion in investments over the next decade, which is almost 20x of private funding investments in such startups over the past 10 years. The amount of fintech companies is also expected to rise by more than 50% from 130 to 260. The approximate size of the wealth and asset management industry of Dubai International Financial Center (DIFC) is now $424 billion. To put this in context, that is equivalent to roughly 30% of the combined GDP of all Gulf Cooperation Council (GCC) countries.
What’s in it For You?
Over 100 blockchain businesses are already thriving in Dubai. The smart city’s blockchain market grew by 24% in 2019 which exceeded the global average of 19%. With the rapid advancement, it is predicted that Dubai and the UAE, as a whole, will accomplish technological goals earlier than predicted.
From its business-friendly policies, innovative use of technology, and strategic location, Dubai offers a world of opportunity for your enterprise. If you want to be part of the blockchain revolution or take advantage of the tax-friendly policies in one of the Emirate’s free zones, don’t hesitate to contact our team of UAE business experts. They will be delighted to guide you in the right direction to making your Dubai dream a reality. Contact Riz and Mona Consultancy today to book your appointment.