Riding the Web3 Wave : Blockchain in UAE
The UAE has a comprehensive regulatory framework for incorporating and capitalizing on blockchain technology. It has been at the front seat in utilizing blockchain technology adeptly in a lot of verticals. Positioned with suitable features like a conducive business environment, and prominence as a financial hub in the MENA region, Web3 applications have great potential to flourish in the UAE. Recognizing this potential, the UAE has evidently embarked on its strategy to bring crypto investments and further blockchain innovation to the country.
With an exemplary implementation of blockchain technology throughout public services, the government has proved its strong inclination towards embracing the Web3 wave. From launching the first national blockchain platforms for secure storage of medical data to issuing thousands of missing passport certificates, the government is working towards saving AED 11 billion for routine transactions and documentation. Partnerships have been established for accelerating the adoption of blockchain in government institutions by upskilling government employees to adapt to emerging technology. Such initiatives are reflective of the UAE’s advancements towards widening the scope of applications of blockchain.
Complementing the strategy of incorporating blockchain technology in public services, the UAE has been also popularising investment in digital assets amongst people. It has been successful in striking the perfect balance between encouraging investments in digital assets and at the same time ensuring compliant and secure operations. Established by the Dubai Virtual Asset Regulatory Authority (VARA), Dubai has adopted legal regulations for crypto-based assets. This comes as an effort to establish UAE’s vital position in virtual assets, globally. Dubai’s government is aiming at developing global standards and infrastructure to accelerate the adoption of this technology. Home to 1000 companies in the metaverse and blockchain sector, Dubai is now aiming to increase this number by 5 times in the coming 5 years.
Financial institutions have been readily evolving towards incorporating blockchain technology in their daily operations. Record keeping, transaction details, and security enhancements are some of the major tractions in finances that have integrated blockchain technology. Recently, Abu Dhabi Islamic Bank (ADIB), a leading financial institution, announced its partnership with the fintech blockchain platform, UAE Trade Connect (UTC) as a part of its digital transformation strategy for enhancing the security of its services. Educational institutions too joined the technology transformation. A Dubai-based school has decided to accept cryptocurrencies for tuition fee payments. Another law firm based out of Dubai also adopted cryptocurrencies as fees from clients.
Of the 9.2 percent of global digital transactions from July 2021 to June 2022, cryptocurrency transaction volumes in the UAE grew more than 37 percent, annually. Home to nearly 120 blockchain start-ups, UAE ranked third globally for the number of blockchain startups present in the 2022 Worldwide Crypto Readiness Report, which looks into several verticals of crypto, like legislation, taxes blockchain startups so on and so forth to gauge the crypto readiness of countries. Some of the biggest global companies operating in cryptocurrencies have been granted licenses to operate in Dubai.
UAE has well positioned itself to be at the forefront of driving the next wave of blockchain technology transformation. Building upon its existing strategies and ever-booming infrastructure, it is heading towards a full-fledged blockchain-powered economy. RAG Global Business Hub understands that building UAE as a Nation of Entrepreneurs is the way to realize its Economic Vision and continue its impeccable growth story. Towards this end, RAG Global Business Hub is committed to launching Entrepreneurs, one person, at a time. RAG is in the business of setting up new companies and helping the existing ones to grow exponentially. We do it by getting business licenses for Entrepreneurs, providing economical office spaces, conducting market research, and liaising with Government authorities through the PRO and allied services. Get free consultation – call Toll Free number 800724249 or write to firstname.lastname@example.org to know how our team consisting of consultants from the World Economic Forum and our international partners Stratagem Partners, Brexit Partners can help you set up, grow and scale.