UAE enables private sector to adopt blockchain tech

UAE enables private sector to adopt blockchain tech

It isn’t any secret that the United Arab Emirates, together with Switzerland, Singapore and several other different nations, is without doubt one of the most forward-looking tech nations on this planet, with the Middle Eastern powerhouse selling the usage of blockchain in virtually each sector conceivable, from vitality to delivery to media.

To assist the nation with its adoption efforts, the UAE authorities has launched two in depth, well-crafted initiatives — i.e., the Emirates Blockchain Strategy 2021 and Dubai Blockchain Strategy. While the previous seeks to unfold the usage of blockchain tech for facilitating over 50% of all authorities transactions by 2021, the latter will assist Dubai rework itself into the primary metropolis on this planet to be totally powered by blockchain.

Furthermore, the Dubai Future Foundation, which is backed by Sheikh Mohammed bin Rashid Al Maktoum, prime minister of the UAE and ruler of Dubai, lately established the Global Blockchain Council so as to assist spur the exploration and real-world functions of blockchain tech throughout a bunch of monetary and non-financial sectors throughout the nation.

As issues stand, the council presently includes 46 members, together with authorities entities, worldwide gamers, main native banks, in addition to tech companies from throughout the globe.

Where does the UAE stand?

On the topic of the UAE’s holistic crypto outlook, Hadi Malaeb, CEO of AgoraGroup — a agency that seeks to facilitate worldwide commerce — advised Cointelegraph that in his view, the UAE administrative regime is by far essentially the most responsive to the crypto business within the MENA area and one of the vital progressive on this planet.

To drive dwelling his level, he highlighted that the UAE’s Securities and Commodities Authority lately printed “The Authority’s Chairman of the Board of Directors Decision No. (21/R.M) of 2020,” which offers native companies and digital asset homeowners with an extra detailed outlook concerning the regulation of crypto property. Malaeb added:

“I can tell you from first-hand experience that the industry has developed tremendously within a very short period of time from an investment, adoption and regulatory standpoints.”

Business adoption is rising

While most nations throughout the globe are simply beginning to acknowledge the financial and technological proposition put forth by blockchain and crypto tech, the UAE has already set in movement a lot of initiatives that may doubtlessly rework the nation’s panorama within the coming decade or so.

For instance, UAE’s Roads and Transport Authority is presently working on a mission that seeks to assist establish a totally automated car lifecycle administration system utilizing a complicated blockchain framework. In temporary, the ultimate platform will create a mesh of producers, sellers, regulators, insurance coverage corporations, patrons, sellers and garages, thereby creating an in depth file of every car via everything of its life cycle.

On the topic, Khaled Alkalbani, CEO of Ideaology — an open-source mission constructed atop the Ethereum ecosystem — advised Cointelegraph that whereas use instances associated solely to cryptocurrencies are low in the mean time, the UAE is undoubtedly one of the vital superior when it comes to blockchain use instances and functions, including:

“The UAE, as always, is bustling with blockchain, digital assets, crypto-related news — to mention, our central bank is using DLT for SME funding and trade finance. The Abu Dhabi Global Market (ADGM) is building an excellent foundation to use/trade crypto, as they believe that this technology will help the economy, businesses and investors.”

Notable use instances

In this vein, researchers affiliated with the UAE’s Khalifa University lately developed digital immunity passports, utilizing blockchain tech. The passport, which can come within the type of a smartphone app, will function a digital doc detailing an individual’s innate danger of spreading COVID-19. Furthermore, the passport will even include particulars resembling prior detrimental take a look at experiences, vaccination information, and so forth.

The providing may doubtlessly show its worth in settings the place there’s a excessive danger of transmission, like sporting occasions, reside concert events, film theatres or buying malls. Not solely that, however it may additionally assist the journey business immensely as a result of it may streamline the screening means of high-risk people.

Etisalat, an Emirati-based telecommunications providers supplier, lately announced the launch of a brand new blockchain platform that can allow the corporate to conduct all of its human resource-related actions in a decentralized, clear vogue. What’s extra, Etisalat’s buyer engagement program, Smiles, launched the UAE’s first-ever Rewards Exchange powered by blockchain tech.

Related: The United Arab Emirates chase crypto and blockchain adoption

The firm additionally has its arms in a lot of different notable blockchain initiatives, most notably, a platform known as Shahada, a tamper-proof digital certificates ecosystem that can be utilized by any academic establishment working within the area, in addition to UAE’s commerce finance platform UAE Trade Connect.

Lastly, the UAE’s nationwide provider Etihad Airways joined forces with open-source journey platform Winding Tree to discover the usage of blockchain tech, primarily as a way of distributing its numerous services straight to its clients, thereby reducing out the necessity for any intermediaries.

Unprecedented curiosity throughout the UAE

With every passing yr, the UAE appears to be garnering extra enterprise curiosity from blockchain lovers globally, particularly because the nation continues to assist spur the widespread adoption of the expertise by offering startups in addition to big-name companies with a extremely conducive environment to develop their envisioned platforms with the least quantity of regulatory pullback.

In this regard, Malaeb identified: “We have hosted more than six events in that space within a period of three years,” including that AgoraGroup’s conferences “have helped startups and well-established companies in this industry to meet, one on one, with pre-qualified investors, and we have witnessed many deals taking place.” Overall, he believes that:

“There is a palpable increase in appetite of institutional investors to explore investment opportunities in digital assets.”

Lastly, Mohanned Halawani, a communications skilled and blockchain expertise specialist, believes that the nation’s tolerance towards practising new applied sciences has had a direct affect on the variety of crypto entrepreneurs shifting to the nation. He believes that UAE’s fiscal basis makes it simpler for native companies to adopt blockchain options with relative ease, including:

“It is a tax haven compared to countries with similar economic growth. […] But yet, there is still lots of room for blockchain adoption here. We hope to see crypto being accepted in retail businesses very soon.”

Some of the interviewees have participated within the Global Blockchain Congress in Dubai on Feb. 9, hosted by the Agora Group.