With the ongoing digital transformations in Dubai like driver-less vehicles, flying taxis, WiFi benches, robot cops, and automated sensors, the city is gaining the limelight as the ‘city of the future’. People are appreciating the efforts of the authorities of the Emirates for introducing the latest technologies and concepts into the traditional processes, and are overwhelmed with their decision of appointing a minister in-charge of Artificial Intelligence.
However, this is not stopping the city government from adding another innovative vision to their Smart Dubai 2020 initiative, i.e, to become the first Blockchain-powered smart megapolis by 2020.
Yes, you read it right.
The city government has already started exploring the potential of the Blockchain and cryptocurrencies in the different niche industries, hoping to revamp the Dubai economy without replacing the existing advanced technologies.
But, is this really feasible? If so, when and how will blockchain affect the Dubai economy?
Considering these questions as the base, I have curated this article where will discuss the impact and future scope of Blockchain technology in different business verticals in Dubai.
But before that, let’s have a quick recap to: What is Blockchain technology and How does it Work?
Blockchain Technology and Its Working
Blockchain, in simpler terms, is a shared digital ledger where the transactional data is stored in the blocks added to a decentralized distributed network secured via cryptography. Here, each block is connected with the previous and next block through a hash code generated using the information of the block, such that the hash of the prior block is stored into the present block. This makes it quite different to modify any block in the chain without replacing its previous and next block.
As shown in the video above, the blockchain is created using different consensus algorithms such that any new transaction or update in the information in the existing block is possible only when the majority of the nodes authenticate the history of that particular block and approves the request. In the other case, the request is denied.
This makes the data stored in blocks publicly accessible, transparent, yet secure which makes it the perfect technology to consider for adding trust value to each transaction without including any third-party.
BONUS: Though many people consider Blockchain and cryptocurrencies as the same thing, there’s a major difference between the two terms. Cryptocurrency is just a subpart of Blockchain; Blockchain is far beyond cryptocurrencies.
Now, as we have retouched the basics of Blockchain, let’s look into when and how we will see the impact of Blockchain technology in the Dubai Economy.
7 Popular Industries Blockchain Technology Will Transform in Dubai, UAE
Blockchain technology will bring a positive change in the Dubai economy by entering into different business verticals and improving their traditional processes. Some of the industries where Blockchain has or sooner make a major difference are:-
Banking & Payments
When it comes to Blockchain in Banking and Payment system, Dubai is already ahead of the other nations, with various popular initiatives and software developed to render a top-level safety in storing and transmitting the data, managing the cost of operations, eliminating the middlemen, streamlining the payment process, and more.
The two renowned examples related to the impact of bitcoin (and non-cryptocurrencies) on Dubai economy with respect to Banking and payment process are:-
- Cheque Chain: Created by the National Bank of Dubai, the Cheque Chain is an effective system to lower down the cheque-related fraud cases by embedding a unique QR code to each leaf of the chequebooks. When a cheque will be received or cleared under the NBD’s ICCS technology, the bank staff will be able to look into the secure validation of the cheque’s authenticity and access the sources in real-time.
- DubaiPay: The Smart Dubai’s DubaiPay system empowers the users to pay off their bills for public services and state entities, as well look into how much amount they owe. In this way, it is used to process a heap of financial data in 27 government and 14 non-government firms connected to the platform. An outcome of which is that DubaiPay collected about $3 billion from 9.4 million transactions in 2017, as said by Mira Sultan Obaid Abdul Rahman, Director of Smart Services Enablement Director at Smart Dubai.
With the motive to rise up as the ‘Happiest City in the World’, the Dubai authority had already started embracing the blockchain technology to transform its healthcare sector in different ways, including introducing imperative health insurance for all the citizens and emigrants, and executing a top-class EHR (Electronic Health Record) system.
The Dubai authority, bearing in mind the UAE National Health Agenda 2021 of achieving world-class healthcare system, is also collaborating with healthcare authorities and top-reputed companies globally. And one relevant example of the same is the agreement signed in the Gitex Technology Week 2018 regarding licensing the healthcare experts with the help of Blockchain. This is expected to save around Dh5.5 billion annually as well as assist the healthcare professionals in obtaining their license from any part of the world.
Diamond Trade and Supply Chain
Blockchain technology, with its prime characteristic of traceability, efficiency and authenticity, will also improve the Diamond trade and supply chain scenario in Dubai, UAE.
The Blockchain technology will help the diamond suppliers make a better business by replacing the paper certification process with smart contracts on Blockchain. The technology will eradicate the intermediaries in this process while using computer scanning tools to evaluate the origin of any diamond.
Similarly, the technology will streamline the supply chain process by keeping an immutable record of every product involved and lowering down the risk of counterfeit.
When talking about the Blockchain effect on Dubai economy in terms of supply chain, the most innovative example to consider is the Digital Silk Road Project. This project is initiated by the Dubai Chamber of Commerce and Industry to employ Blockchain to eradicate the prime shortcomings of the existing trading system and maintain transparency, automation, security and reliability in the process.
Another industry where we will see the impact of Blockchain and cryptocurrencies in UAE is Real Estate. The technology, as predicted by the Dubai authorities and Blockchain-based companies, will cut down the time required for property transactions from 1 week to around 30 minutes. It will empower different real estate stakeholders to provide services on a single platform, which will eventually enhance the end-user experience. It will also help the property managers to easily handle the risk and hassle in the process of managing the properties of hundreds of owners seamlessly.
Besides, the technology will also make it easier to check the rental history of any tenant and make the decision of giving your property to them on rent or not based on the tracked tenant score, as well as preventing modifying the rental agreements.
In a nutshell, the technology will benefit everyone involved in the real estate industry, may it be buyers, agents, brokers, property managers, tenants, or government. Considering this, the Dubai Land Department (DLD) has initiated towards implementing a Blockchain network for all stakeholders which will streamline all the processes by replacing paper documents with digitally signed contracts. Therefore, it will result in enhanced, secure, and streamlined property transactions.
Another domain where Blockchain and cryptocurrencies will bring disruption is Transport. The technology, as per the top Blockchain development company in Dubai, will streamline the transport business in Dubai by introducing newer features and facilities, including tracking the history of the vehicle, preventing disputes regarding the ownership, maintaining transparency in the process by eliminating the middlemen, and more.
Considering this features and benefits, the Dubai’s Road and Transport Authority (RTA) has recently announced to launch a vehicle management system based on Blockchain by 2020. Formed in associated with the Dubai 10x initiative, this project will show a detailed record of the vehicles at any instance of time of its entire life cycle. It will be initially introduced in Dubai to see its effect on the transport system and then will be expanded to the UAE.
Another major sphere where Blockchain will bring a disruptive change is Government. Blockchain, as per the Emirates Blockchain Strategy 2021, will be considered to overhaul 50% of the government processes, and save AED 11 billion in transactions, 398 million printed documents and 77 million working hours annually.
In other words, the blockchain operations in UAE will majorly focus upon promoting paperless transactions, streamlining the government operations, improving the quality of public services, and therefore, building a trust between the authority and public. The technology will also be considered for offering exquisite notarization services to the public, helping them to approve the exact time of any event, like birth or death of a person, buying/selling of any property, etc.
Blockchain technology will also give a push to startups and established enterprises in the Dubai economy. The technology will provide entrepreneurs with abundant benefits. Firstly, the Blockchain cloud services for bridging the gap between the technical skills required in the market and the candidates offering the same. Secondly, the technology will offer the enterprises with the opportunity to put all the entities work on a single, secure platform. These features along with the support from Dubai authority will make Dubai the first-choice for startups and Entrepreneurs to make a good fortune.
While the aforementioned are some of the areas of the Dubai economy that have entered the Blockchain world, various other entities such as Dubai Airports, Dubai Police, Dubai Municipality, Dubai Courts, and several financial services providers are expected to join the party. So, if you belong to any of these industries that are involved into this process of embracing the Blockchain technology or you are interested to explore the untapped potential of Blockchain technology for your niche market, contact our Blockchain development experts today.