Blockchain Technology Strategy in Dubai might considerably boost the trade sector with its heightened record-keeping measures.
Dubai is one of the well-known commerce hubs worldwide.Dubai has done a great deal by attracting business and implementing a borderline tax regime for businesses ventures.
Dubai Blockchain Strategy
Yes, Dubai aims to be a city built on Blockchain. His Highness Sheikh Hamdan has launched The Dubai Blockchain Strategy with a collaboration between Dubai Future Foundation and the Smart Dubai Office.
Advanced infrastructure and transportation and a secure and contributing business atmosphere additionally facilitate in promoting new businesses within the city.
The blockchain technology continues to be in its nascent stages and researchers all across the globe, including Dubai, are attempting the most effectively to harness this technology for daily business operations. to become a city built on blockchain technology.
The Dubai Blockchain strategy will strengthen Dubai’s reputation as a global technology leader and be a city built on blockchain technology.
Now it’s coming up with another transformation to bolster its claim as the leading center for business in the Middle East to an economy that depends heavily on blockchain technology.
The Blockchain is most commonly known as the technology behind the cryptocurrency bitcoin, but it can serve multiple other purposes.
It uses a digital ledger to expeditiously share and track information associated with contracts and transactions, the records of that are permanent, verifiable and secure.
The goal of Dubai’s government is to conduct a majority of the emirate’s business with the aid of blockchain.It expects to build government services a lot of economical and allow to promote enterprise in Dubai because it can become easier to conduct business there.
“We wish to create Dubai the first blockchain powered government in the world by 2020,” says Aisha Bin Bishr, director general of Dubai, a government office tasked with facilitating innovation in the emirate. “It is turbulent for existing systems, however, can help us significantly in the long run,” she says.
Blockchain technology in Daily Operations
Blockchain has nevertheless to be deployed wide for commercial use, however multiple colossal international corporations are testing the technology.
It’s attracted the foremost attention within the financial-services sector and is seeing growing interest from industries like the supply-chain management, healthcare, and shipping.
For instance, Wal-Mart Stores INC. is attempting out blockchain to boost the means the food is traced, transported and sold to consumers across China.
And Depository Trust & Clearing corp., an enormous Wall Street firm that processes financial transactions, plans to begin the use of blockchain by early next year.
The technology shift may allow it to cut its cost of storing information on the transactions it handles, savings that might be passed on to customers.
In general, blockchain has the potential to speed up transactions, increase transparency and allow scale back fraud such as money laundering.
However, it additionally faces many challenges to broad adoption.One is cyber security.
Backers of blockchains claim that they are secure as far as the design of blockchain is concerned, but the technology hasn’t been adopted wide enough yet for it to be seriously tested.
Many hacking attacks against digital currencies in recent years underscore the security issues.
Regulatory uncertainty is another hurdle, specifically within the financial-services sector. Legal frameworks globally will have to be compelled to modification to adapt to the growing use of the new technology.
The costs to shift to the new technology, that continues to evolve, can also be high. And there are several technical challenges which are involved in merging the blockchain databases with existing systems.
Despite all that, the benefits of blockchain are extremely enticing for multiple businesses and institutions.
Dubai, a semi-autonomous member of the United Arab Emirates, is one of the initial city to back the technology on a government level.
Blockchain Tech: A Joint Effort
In March 2017, Dubai City embarked on a broad effort to implement blockchain.
Over the coming months, there will be workshops with key government, semi-government and private organizations to spot and grade the services which could be most boosted with the help of by blockchain.
It simultaneously can educate the general public and private sectors regarding the blockchain technology’s potential.
With the help of these workshops, Dubai City hopes that the public and private sectors work together to start rolling out new blockchain projects this year.
Dubai also has plans to form a shared platform Blockchain as a Service(BaaS) for their governing bodies to use for their projects implementations.
Wesam Lootah, the chief executive of Dubai, says a mutually collaborative effort is crucial to make sure that the emirate as a whole is moving towards a similar direction and is using the advantage of synergies and avoid duplication of efforts and costs.
Smart Dubai has appointed International Business Machines Corporation. IBM -0.40% as Dubai’s blockchain strategy lead partner and Consensus, a custom software development consultancy, as its blockchain authority.
Dubai is embracing blockchain technology as “government agencies and businesses to realize the requirement to have a shared, secured ledger that establishes responsibility and transparency whereas streamlining business processes,” says Takreem El Tohamy, IBM’s general manager for the Middle East and continent. “The goal is to continuously keep business value at the forefront.”
Beginning of Blockchain era in Dubai,/h2>
Several key Dubai entities are already attempting out the blockchain technology.
The Department of Economic Development, a government agency, is typically the primary stop for any company aiming to do business in Dubai.
Its role includes facilitating the setting up of companies, issuing of commercial licenses, safeguarding the rights of businesses and consumers, and promoting enterprise and exchange Dubai.
The department is starting out with, it’s functioning on shifting its entire business registration and licensing services to the blockchain.
“We want to transfer existing information to blockchain and furthermore introduce as create a system for brand new data,” says Prophet Shael Al Saadi, the department’s chief executive for corporate strategy.“This information would be accessible to different Dubai entities, reducing duplication and easing and swift the method to set up businesses in Dubai,” he says.
Another huge early investor in Dubai’s blockchain strategy is Emirates NBD one of Dubai’s largest bank is one of the early investors in the blockchain tech.
A Majority of Emirates NBD is held by the Investment Corporation of Dubai, manager of the Dubai government’s portfolio of commercial investments.
Emirates NBD in February started operating with IBM and a few alternative Dubai entities to explore the employment of blockchain for trade finance and logistics.
Trade is Dubai’s biggest business. it has earlier used its ports and free zones to become a significant import-export hub, connecting markets in Asia with those in Africa, Europe and on the far side. Non-oil foreign trading in the emirate was in totality estimated about $348 billion in 2016.
“The aim is to switch paper-based contracts with smart contracts that may allow and reduce advanced documentation for the tracking, shipping, and movement of goods,” says Ali Sajwani, the group chief information officer at Emirates NBD.
“We have a really clear objective to make Dubai the capital of the blockchain industry,” says Dubai’s Ms. Bishr. “By 2020 we’ll have 100% of applicable government services and transactions happen on the blockchain.”
According to Smartdubai.ae ,
By Adopting Blockchain technology Dubai stands to unlock approximately 5.5 billion dirhams in annual savings just in document processing alone, which is equal to one Burj Khalifa’s worth of value yearly.
Definitely, Dubai Blockchain strategy is an excellent initiative for the technological and business advancement of Dubai.Using the advanced technologies to conduct business will make Dubai more business friendly and operation efficient.