The Dubai Blockchain Strategy launched in 2016, aiming to transform Dubai into the first blockchain-powered city by 2020. Dubai aims to have all government processes run on the blockchain and create an entirely new industry around the distributed ledger technology. While most news about blockchain adoption tends to speak about the future of what could be, below are five examples of real-world adoption by some of the most prominent institutional players in Dubai today.
The Dubai Land Department (DLD)
The Dubai Land Department (DLD) was established in January of 1960 to handle all real estate operations in Dubai. It is in charge of tasks such as approving, organizing and documenting real estate transactions for the region. Recently, the DLD has partnered with numerous banks and companies to facilitate the adoption of blockchain in various ways.
- Etisalat — a multinational telecom firm serving countries in the Middle East, Asia, and Africa — has signed a memorandum with the DLD. Etisalat aims to implement smart government standards as well as introduce paperless management and digital contracts for property transactions. The implementation of this memorandum has the potential to improve the registration and verification processes, resulting in faster transactions and greater security for all parties involved.
- Mashreq Bank has partnered with the DLD to release a blockchain-based mortgage platform. The platform will act as a repository for mortgage records and serve as a way to confirm the compliance of mortgages and registration policies. Additionally, the platform will accommodate updates that occur after a property sale. These include recording liquidations, payment defaults and changes to mortgage contracts.
- The Real Estate Self Transaction System was launched by the DLD last year. The blockchain-powered system is designed to digitize documents and facilitate paperless transactions while streamlining the brokerage process. The platform will also help connect tenants and landlords, improving communication between tenants, utility companies and home maintenance requests.
Emirates NBD
Dubai’s largest bank has become the first to successfully implement a blockchain solution that aims to cut check-related fraud. Following a successful pilot last year overseen by Emirates NBD Future Lab, the bank is now rolling out its security-enhancing technology for customers across the UAE. The initiative, which integrates blockchain technology into issued checks to strengthen their authenticity, will significantly enhance security standards across the UAE banking sector.
National Bank of Abu Dhabi
The National Bank of Abu Dhabi (NBAD) has become the first bank in the Middle East and North Africa to introduce real-time, cross-border payments on the blockchain — becoming the latest lender to use the technology with an eye toward massive cost cuts. NBAD’s move follows an announcement in October by the UAE’s largest lender, Emirates NBD, that it was working with an Indian bank, ICICI, on a pilot project to use blockchain technology for global remittances and trade finance. The United Arab Emirates accounts for more than $19 billion of remittances per year, ranking it fourth in the world for this category according to World Bank data.
UAE Banks Federation (UBF)
The UAE Banks Federation (UBF) is reviewing a proposed adoption of blockchain to enhance their “Know Your Customer” (KYC) processes. The bank is exploring opportunities for creating industry standardized digital processes with member banks and other potential functions that can be leveraged through blockchain. These functions would include client on-boarding, cross-border transfers, payments and compliance reporting — to name only a few.
Al Hilal Bank
Jibrel’s recent partnership with Abu Dhabi Global Market (ADGM) and Al Hilal Bank to build the next generation of compliant Sukuk transactions was the first step in the vision of putting financial assets on the Ethereum blockchain. Total international Sukuk issuances hit an all-time high in 2017 at $37.6 billion, which was the highest value recorded since the inception of the Sukuk market. This rapid growth was bolstered by Saudi Arabia’s entry as a sovereign Sukuk issuer. The country’s first issuance was a sizable $9 billion, which has largely contributed to the 32% increase in the global Sukuk issuance volume between 2016 and 2017. By streamlining operations in multiparty activities, Jibrel is disrupting the traditional model of bond issuance we know today.
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