How UAE can save over Dh11b by adopting blockchain technologies?

How UAE can save over Dh11b by adopting blockchain technologies?

The UAE is set to save over DH 11 billion by implementing advanced blockchain technologies, according to new reports.

This technology will help the UAE government in saving costs by eliminating 398 million in printed documents and 77 million in work hours per year.

Currently, 80 % of public and private sectors are already using the technology.

The CEO of the Dubai Future Foundation (DFF) Khalfan Belhoul said that,

The UAE has always been a leader in the early implementation of brand new technologies, and this stands true for blockchain as well. Besides that, it is a vital contributor to developing a systematic approach for new technologies.

To keep this tradition of implementing emerging technologies, the UAE government has launched two initiatives, the Dubai Blockchain Strategy in 2016 and the Emirates Blockchain Strategy, in 2018 to advance the penetration of this technology nationwide. 

By creating an industry for blockchain, the government is making sure that the region is ready to collaborate with the international markets and industries.

So as to further this cause, the country has hosted multiple conferences and seminars that illuminate the benefits of blockchain to educate its entrepreneurs and business owners.

The UAE government has decided that by 2021, as a part of its strategy to capitalize on the advantages provided by blockchain technology, 50 % of the transactions will be done via the incorporation of the blockchain.

Furthermore, according to the study, the government will be faced with two main challenges while implementing blockchain, and those are:

  • Corporate and
  • Service providers.
  • And, to some extent, the operational and regulatory authorities.

The corporate and service providers will struggle with educating and creating awareness among the stakeholders.

However, the operational and regulatory spheres will face ultimate reluctance while implementing this technology.

Omar bin Sultan Al Olama, the UAE Minister of State for Artificial Intelligence, reiterated the fact that the UAE has been quick to adapt to new technologies. Hence, cementing its position as the World leader.

He further added:

The UAE government has taken an active role in spreading the blockchain technology to the public and private sectors. Spearheaded by the launch of the Dubai Blockchain Strategy and the Emirates Federal Blockchain Strategy, the government has ensured that the technology is accessible to all. In addition to that, these initiatives have caused an increased interest of international investors in the UAE.

The success yielded by deploying blockchain technology is now for the first time being shared with the people, in this paper.“–the minister, of course, is referring to the white paper that was published by the Centre for the Fourth Industrial Revolution UAE (C4IR UAE), said the Dubai Future Foundation (DFF) and the World Economic Forum.

The case studies documented below illustrate the fundamental challenges and success factors that were faced during the deployment of blockchain technology.

Case Studies on blockchain

DP World —global ports operator

Global ports operators had to deal with two challenges to accomplish their goals. The first one was to collaborate with the UAE entities to enable registration, memberships of new traders on a single platform, licenses, and digitization of exit/entry certificates that were required at the ports.

The second objective was to create a blockchain for beneficiary cargo owners and their trade-logistics business partners to promote data sharing and process integration.

Read more: Dubai is Leading in Innovation and How You Can follow Suit?

Dubai’s largest bank, Emirates NBD

The bank has decided to invoke the blockchain technology to tackle and minimize the challenge presented by cheque fraud.

Fraudsters try various sophisticated technologies to stimulate cheques which cause financial, reputational as well as legal risks to the bank.

In order to curb this very real threat, the bank employed blockchain technology as a mechanism that will control it.

 According to the study:

As the group issues close to one million cheques monthly that represent 30% of the total UAE’s clearing volume hence making it the most vulnerable and the one likely to be susceptible to fraud. Therefore, blockchain was explored as a counter-attack to minimize this risk.

Blockchain application

  • By applying QR code on every page of the new cheque book and utilizing blockchain as a verification layer that can not be tampered with the bank ensured the safety against forgery.
  • By launching e-cheques to save potentially 1.2 billion pages yearly and expanding this service so that other forms of documents are digitized.

Ending notes

Mirek Dusek, the head of the Middle East and North Africa (MENA) and member of the executive committee at the World Economic Forum, said that the C4IR UAE originates from a deep-rooted alliance between the UAE and the World Economic Forum.

“We are eager and excited to launch this report, which represents a concrete example of how the C4IR UAE can drive and inspire leadership on the inclusive deployment of blockchain. The policies and principles realized in the report will empower not only the UAE and the region’s business and government entities, but will also drive worthwhile partnerships with other countries that are part of the World Economic Forum’s Fourth Industrial Revolution.”

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