dubai - Pwim.Net

R3 Partners with Dubai Fintech Firm to Revolutionize the Sukuk Market

Enterprise software firm R3 recently entered into a strategic partnership with a Dubai-based fintech firm, Wethaq. The partnership aims to bring together a platform for issuing and trading Sukuk securities by utilizing R3 Corda’s blockchain.

Wethaq’s platform will be building the next generation of financial market infrastructure for issuers, investors, central banks, and regulators to transact easily in Islamic capital markets. Sukuk, a type of financial certificate similar to a bond, complies with Islamic Sharia Law. Sukuk represents partial ownership in an asset, whereas a bond is a debt obligation.

The issuance of Sukuk can be modified by the partnership, as it is heavily regulated and requires a substantial amount of time for issuance.

R3 CEO David Rutter believes that R3 Corda could change the economy in Saudi Arabia and the Middle East. He mentioned:

“Blockchain is driving an unprecedented period of innovation across capital markets, with more assets moving towards complete digitization. As such, there is no better time to seize the advantages of blockchain to transform global financial systems. Saudi Arabia and the wider Middle East region are areas where we see huge potential for Corda to modernize the economy, and our partnership with Wethaq is a step towards achieving that.”

Wethaq CEO Mohammed Alsehli stated:

“Our joint focus is on building world-class financial infrastructure in Saudi Arabia, in alignment with the Kingdom’s Vision 2030, and the UAE, pursuant to their ambitious fintech agenda, before we expand to the entire Middle East and Southeast Asia.”

Image via Shutterstock

Dubai Economy Moves to Blockchain-Based Unified Business Registry Platform

Dubai’s Department of Economic Development has announced its move to a Unified Business Registry Platform (UBRP). The UBRP is hosted on the innovative Blockchain Platform as a Service (BPaaS) of Dubai Pulse which is a joint initiative of Smart Dubai and du.

As reported in the Saudi Gazette on Monday, the UBRP will enable local and federal entities to provide a unified and transparent outlook of business in Dubai and establish a better regulation model. The platform aims to enhance business practices and enable license issuers to better manage trade and corporate registry.

The UBRP eventually aims to host a total of 40 government entities and has already recruited three major entities—the Silicon Oasis Authority, the Dubai Electricity and Water Authority, and Dubai Multi Commodities Centre—to the platform.

Wesam Lootah, CEO of Smart Dubai Government Establishment, said, “The success of the flagship Dubai Pulse platform means it is now a mainstay for all government entities and enterprises looking to utilize its transformative capabilities. Many government entities are enjoying the innovative value of the platform and, with the Unified Business Registry Platform, we are another step closer to realizing the vision for a happier, smarter, and more digitally-enabled Dubai.”

The blockchain solution is the first locally-hosted BPaaS in the UAE which serves two different protocols—Hyperledger fabric and enterprise client of Ethereum. Leveraging its features, the platform will facilitate scalability and onboarding of new entities, with capabilities for entity nodes to be hosted on Dubai Pulse or on external infrastructure. The UAE has projected that 50% of government transactions will be blockchain-based by 2021.

Image via Shutterstock

Dubai-Based Property Developer Introduces Bitcoin Payment for Home Buyers

Ellington Properties, a Dubai-based developer, has chosen Bitcoin Suisse (BTCS) as its ideal crypto brokerage provider to facilitate Bitcoin payment for its international customers.

The new crypto payment option was meant to boost customer satisfaction. Ellington Properties has acknowledged that customers can buy homes across Dubai using Bitcoin. Expressly, Bitcoin Suisse is expected to facilitate the transaction process.

Ellington Properties also stipulated that it chose BTCS because it has been instrumental in revitalizing the blockchain and crypto ecosystem in Switzerland.

Paula Wehbeh, the Head of Business Strategy at Ellington Properties, said: “As a tech-driven and customer-focused company, we move with the market trends to meet the customer’s aspirations, especially in this era of digital financial engagement. Cryptocurrency is becoming an increasingly popular payment method.”

He added: “Enhancing the customer experience through an added payment choice, Bitcoin Suisse will serve as our preferred crypto brokerage provider that will further add to our international property transactions – and in turn bring more value to Dubai’s economy.”

Ellington Properties has been involved in various real estate projects in Dubai, such as Belgravia, Belgravia II, and Somerset Mews, among others. The introduction of the Bitcoin payment seeks to offer its customers more flexibility so that their satisfaction levels can be maximized.

Image via Shutterstock

Dubai’s Blockchain Market to Surpass $118 Million by 2025

Smart Dubai, a government entity established in 2013 to make Dubai a smart city, has revealed that the application of blockchain technologies in the city will increase to Dh437 million, around $118 million, by 2025 from Dh 35 million, approximately $95 million, recorded in 2018. This upward trend will make Dubai account for about 1% of the global blockchain value.

Smart Dubai executives noted at the Dubai Blockchain Strategy 2020 that out of 8,000 worldwide blockchain companies, 114 or 1.4% of them are based in Dubai.

Dubai’s strategies of being a blockchain hub

One of Smart Dubai’s primary objectives is to make Dubai the happiest city globally. This goal is to be achieved by leveraging on technological advancements, such as blockchain.

In October 2016, the Crown Prince of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, announced that Dubai would be powered via blockchain. By 2021, it is expected to be the first city to be fully powered by blockchain.

Smart Dubai noted, “Adopting Blockchain technology Dubai stands to unlock 5.5 billion dirhams, approximately $1.5 billion in savings annually in document processing alone — equal to the one Burj Khalifa’s worth of value every year.”

Nearly 24 blockchain use cases are being implemented across eight sectors. This initiative is touted to be instrumental in propelling Dubai’s smart city transformation efforts in 2020.

Dr. Aisha Bint Butti Bin Bishr, director-general of the Smart Dubai Department, affirmed, “We accomplished what we promised of building a holistic blockchain ecosystem in Dubai. We have been working with government and private sector partners to identify a series of use cases across multiple sectors. Blockchain cannot solve everything, and we need to be wise in selecting these use cases. That is what we have done here.”

The shared Dubai blockchain platform was established in collaboration with IBM to permit government entities to build use cases without necessarily investing in individual infrastructure.

Image by ZQ Lee via Unsplash

Dubai Economy Gets Powered by UAE KYC Blockchain Platform for Safe Digital Customer Onboarding

The Dubai economy has gone live on the UAE KYC (Know-Your-Customer) blockchain platform making instant bank accounting functionality, secure digital customer onboarding, and sharing of verified data between financial institutions and licensing authorities possible.

As reported by local outlet Khaleej Times on July 28, this initiative is powered by norbloc, a leading blockchain KYC technology firm.

Blockchain-based ecosystem

Emirates NBD, a leading bank in the UAE, is the first banking group to be part of the project based on its active and operational bank accounts. Other banks like Commercial Bank of Dubai, RAKBANK, HSBC, and ADCB are expected to follow suit.

This blockchain-enabled ecosystem is set to be adopted nationwide in the exchange of authentic KYC data as it is already supported by the Central Bank of UAE and Smart Dubai.

The CEO of Business Registration & Licensing (BRL) field in Dubai Economy, Omar Bushahab, noted, “We are very proud to announce that the UAE KYC Blockchain Platform is now production-ready with over 120 companies already instantly onboarded by Emirates NBD with active and operational bank accounts.”

He added, “This marks a key milestone in establishing a UAE-wide ecosystem for KYC data sharing and instant digital onboarding of companies by financial institutions. It is in alignment with the government’s vision around digitization and paperless as crucial strategies that enable continuation and sustainability, especially during these challenging times, further enhancing the ease of doing business in the country.”

The Dubai economy has already shifted its active trade licenses to the blockchain platform. This represents more than 40% of their overall number in the UAE.

Seamless data retrieval

By leveraging on the blockchain platform, participating financial institutions are seamlessly retrieving customer data and getting real-time updates on the same.

The blockchain-based banking solution aim to boost customers’ satisfactory rates by giving them more time to focus on their businesses.

Astyanax Kanakakis, norbloc CEO, asserted, “The commitment of Dubai Economy, leading financial institutions such as Emirates NBD, Dubai Government, and the UAE Government to this initiative demonstrates a proactive and ambitious mindset, and positions the UAE as one of the first countries taking significant measures towards creating a digital low touch economy with simplified processes ensuring that business can continue to thrive in the post-COVID environment.”

This project seeks to place the UAE as one of the first nations to deploy a countrywide blockchain data-sharing ecosystem. Blockchain-based solutions are continually being embraced globally as leading big four firm Deloitte recently partnered with Chronicled to tame counterfeit medication through this cutting-edge technology.

Carrefour Shoppers in the UAE to Get Farm-to-Shelf Information with Blockchain Technology

The shopping experience of Carrefour customers in the United Arab Emirates (UAE) is expected to be boosted as they will be in a position to track the place of origin of the products they intend to buy thanks to blockchain technology.

Blockchain-powered food trust solution

The collaboration between Majid Al Futtaim, the Carrefour franchisee, and IBM, is expected to boost shoppers satisfaction levels because the latter will provide a blockchain-based ‘Food Trust’ solution.

Carrefour shoppers will be able to trace the origin of fresh chicken or vegetables by just a simple scan using their smartphones.

According to the announcement:

“By using their smartphone to scan a QR code on products such as Carrefour’s fresh chicken, customers will be able to get immediate access to actionable food supply chain data, from farm to store shelf.”

Furthermore, the product’s history, such as nutrition and temperature data, halal and hygiene certifications, and production process, will be included in the blockchain-based system.

Conscious consumerism

People are continuously advocating for conscious consumerism because they are attentive to detail on what they eat or drink. For instance, knowing how their food was grown and its origin, and whether it was produced ethically and sustainably.

IBM Food Trust was first launched in August 2017 by10 Foundation members to enhance the realization of this objective by using blockchain to solve challenges in the food supply chain.

Carrefour supermarkets in the UAE join Coop Italia in using IBM’s blockchain technology to boost food traceability because the biggest retail chain in Italy deployed this cutting-edge technology in December 2019 to trace the origin of eggs in its supply chain.

Precisely, by leveraging blockchain technology, Coop Italia wanted to have full visibility and transparency of the different players taking part in the production chain involving nearly 2 million hens producing at least 200 million eggs annually.

Crypto Businesses Given the Green Light to Set Up in Dubai’s Free Zone

Following a memorandum of understanding (MoU) between the Dubai Multi-Commodities Centre (DMCC) Free Zone and the Securities and Commodities Authority (SCA), crypto businesses have been granted the liberty to operate in DMCC once registered licenses are granted.

Fostering crypto and blockchain growth in Dubai

According to the announcement:

“Working closely with DMCC’s onboarding teams, the SCA will issue approvals for crypto-related businesses looking to set up in DMCC. The SCA will subsequently regulate the crypto activities in line with their policies, which were introduced in October 2020 to develop an integrated ecosystem for the crypto and blockchain industries.”

The strategic agreement aims to foster growth and development in this sector by bringing the world’s leading blockchain and cryptographic technologies’ ecosystem to Dubai.

Ahmed bin Sulayem, DMCC’s CEO, noted:

“This agreement also builds the foundation for our future partnerships in the crypto space and is a major step in the launch of the DMCC Crypto Centre, which we will bring to the market in the near future.”

Crypto interest in Asia is brewing, showing long-term optimism in the market.

DMCC: Promoting technology-driven trade

DMCC was established in 2002 as a government entity mandated with enhancing commodity trade flows through Dubai. It comprises more than 18,000 businesses from a wide range of sectors and industries.

The MoU will be instrumental in enabling crypto businesses to set foot in the free zone. DMCC has shown its commitment to support the blockchain and crypto sector.

For instance, in August 2020, it established a blockchain-based agri-commodity trading and sourcing platform dubbed Agriota E-Marketplace to link millions of Indian rural farmers with the UAE food sector.

One of its primary objectives entailed giving the farmers a competitive edge by availing blockchain-powered solutions when eliminating intermediaries and the timely access of the marketplace.

Furthermore, by leveraging blockchain technology, DMCC planned to optimize the UAE’s food supply chain by availing standard products, such as condiments, spices, vegetables, fruits, oilseeds, pulses, and cereals.

Dubai-Based Asset Advisors Enables Clients to Purchase Real Estate with Bitcoin and Ethereum

Purchasing real estate property with cryptocurrencies is becoming more of a reality, especially in Dubai.

With Bitcoin gaining traction, Dubai has been innovative and has embraced the digital trend, even to the point of supporting and facilitating cryptocurrency payments for real estate property.

The Asset Advisors, a real estate firm based in Dubai, figures among those that have capitalized on the digital wave. A firm that offers property investments and high-end real estate selections to investors, home buyers, corporations and individuals looking to relocate to Dubai, The Asset Advisors enables the process of owning property to be finalized in real-time – through Bitcoin and Ethereum payments. Tether (USDT) is also accepted as a payment method, although the most popular option remains Bitcoin and Ethereum.

According to the CEO and founder of The Asset Advisors, Fawzi Hamze, the transaction is secure and transparent, and the client does not even need to be in Dubai at the time of purchase. In a conversation with Blockchain.news, Hamze elaborated about the process of using Bitcoin and Ethereum as down payment for housing:

“Once the client confirms the property he desires to own and we agree on the price, the property details, and the payment schedule, we issue an OTP (Offer to Purchase) as a 1st official contract ensuring the client will buy the property. The client then informs us which crypto he prefers to use, and we check with our 3rd party crypto exchange for the percentage fees.”

In order to make this happen, The Asset Advisors works closely with developers, who are tasked to approve the crypto exchange used as a medium in the transaction. Hamze further explained that this process makes the transaction efficient, transparent, and secure. He explained the final step of the crypto transaction:

“The client will then transfer the cryptocurrency amount to the third-party digital wallet, who will make the payment on the spot to the developer. All communications between parties are official and transparent.”

Once the Bitcoin or Ethereum payment goes through, the client will receive a confirmation receipt from The Asset Advisors’ developer. A sales and purchase agreement will then be delivered to the client by courier, confirming the client as a real estate property owner.

With Bitcoin’s market cap exceeding $1 trillion and Ethereum’s reaching $300 billion, Hamze said that cryptocurrency was on the rise. He explained to Blockchain.news that companies and developers were increasingly looking to embrace digital assets and integrate them into their business models to stimulate innovation and growth.

With real-estate housing, Hamze explained that the process of becoming a property owner was facilitated and made easier and quicker with cryptocurrency. While the client would previously have had to wait approximately a week or more for the bank to begin the investigative process and gather the needed paperwork, using Bitcoin and Ethereum to purchase houses circumvents the waiting time and can make a client “a property owner in less than 30 minutes.”

Hamze therefore envisions that in the near future, the use of Bitcoin to pay for real estate property will be normalized, especially in as fast-growing of a market as Dubai. He further elaborated:

“In the long-term, Bitcoin will dominate the market. Using this technology will facilitate a lot of transactions in most sectors. Tesla, who has invested $1.5 billion in Bitcoins, has already jumpstarted on this opportunity by accepting Bitcoin as a payment method.”

Owning real estate in Dubai

Owning real estate in Dubai poses many benefits for investors. As Dubai is an income and capital gains tax-free environment, this translates to a huge investment opportunity for buyers. Additionally, compared to other global cities and financial hubs such as London, Hong Kong, and New York, entering Dubai’s property market may prove to be less costly.

The Asset Advisors facilitates an investor’s first experience and taste of the real estate market in Dubai. With the real estate firm, a “Move In and Pay Later” program has been implemented to offer attractive and flexible payment packages to potential investors. With the “Move In and Pay Later” program, investors have the opportunity to pay a predefined amount after purchasing property with Asset Advisors. Post handover payment plans can range anywhere from 3-10 years, depending on the developer and the type of project.

In order to learn more about the real estate market in Dubai, investors can also join Expo 2020 to gain more understanding and information. Expo 2020, a hugely anticipated exhibition about Dubai-based investments in various sectors, is expected to draw over 25 million visitors to the United Arab Emirates (UAE).

According to previous market data, Expo 2020 has created around 277,000 new jobs, which is a positive impact on the real estate market. Some experts have even predicted that housing prices will grow by 20-35% as a direct result of Expo 2020. With the appreciation of real estate property in Dubai, investors can capitalize on this opportunity and see their property appreciate in value with time.

Owning property in Dubai will therefore prove to be beneficial for investors in the long-term. Additionally, just last week, Prime Minister of UAE & Ruler of Dubai H.H Sheikh Mohamed announced his plans to make Dubai the world’s best city to live in. Per his plans, about 60% of the Emirates will be nature reserves. The government is also planning to increase public space by 400%, and green and recreational spaces by 105%. Two additional main urban centres will also be implemented.

With the high-quality lifestyle UAE has to offer and its rise in innovation, investors should therefore capitalize on these opportunities by securing a property investment in Dubai.

Fawzi Hamze is the CEO and the founder of The Asset Advisors.

Hamze has over seven years of experience in the real estate industry, and continues to help potential investors with real estate property management in Dubai.

UAE Rolls Out Blockchain-Powered Trade Finance Platform to Fight Fraud

The United Arab Emirates (UAE) has launched a blockchain-enabled trade finance platform dubbed UAE Trade Connect to curb economic crimes like money laundering, under-invoicing, and fraud.

Revamping the trade finance space

Telecom giant Etisalat has joined forces with a consortium of seven leading local banks like the First Abu Dhabi Bank (FAB) to roll out the blockchain-powered platform. More banks are expected to sign up.

According to Zulqarnain Javaid, an Etisalat official:

“UAE Trade Connect will be a game changer for the trade finance space.”

The blockchain-based system has taken two years for it to be actualized, including six months of trials. The UAE Central Bank’s fintech division was part of the steering committee mandated with overseeing the project.

Boosting fraud detection

As per the announcement:

“The platform is primarily into fraud detection within the trade finance space, but the promoters expect it to evolve into handling trade-based money laundering or sanctions busting. And at a later date, get into e-invoicing.”

Javaid noted that the UAE Trade Connect had the capability of handling bank guarantees, letters of credit, and bills of lading, which entailed working closely with governments, custom authorities, and ports.

The UAE continues showing its support for the blockchain and crypto sector. For instance, following a memorandum of understanding (MoU) between the Dubai Multi-Commodities Centre (DMCC) Free Zone and the Securities and Commodities Authority (SCA), crypto businesses were granted the liberty to operate in DMCC last month.

The strategic agreement was intended to foster growth and development in this sector by bringing the world’s leading blockchain and cryptographic technologies’ ecosystem to Dubai.

In August 2020, the DMCC established a blockchain-based agri-commodity trading and sourcing platform dubbed Agriota E-Marketplace to link millions of Indian rural farmers with the UAE food sector.

One of its primary objectives entailed giving the farmers a competitive edge by availing blockchain-powered solutions when eliminating intermediaries and the timely access of the marketplace.

Middle East Eyes for Strong Potential Cryptocurrency Market

More Middle East countries are taking a bet on cryptocurrency, despite its high volatility nature, which may beat investors.

The first Bitcoin fund in the Middle East was listed in Nasdaq Dubai last Wednesday, which was launched by 3iQ, one of Canada’s largest digital asset fund management companies, and its assets under management are worth more than $1.5 billion.

The dual listing of the Bitcoin fund on Nasdaq Dubai this time provides investors in the Middle East with investment opportunities directly linked to Bitcoin.

Canadian investment fund manager 3iQ Corp. announced that it had received approval from its public hearing by the Ontario Securities Commission (OSC) in October 2019. The closed-end Bitcoin fund will be listed for trading on a major Canadian stock exchange.

Beyond the first time, Israel also has already carried out a pilot test and is seriously considering implementing a CBDC of digital Shekel.

Other countries in the Middle East region have also participated in various levels of cryptocurrency projects. The United Arab Emirates (UAE) has launched a blockchain-enabled trade finance platform called UAE Trade Connect (UTC) to curb economic crimes like money laundering, under-invoicing, and fraud.

While cryptocurrency has gradually penetrated the Middle East, the high degree of volatility in the cryptocurrency market has also drawn the attention of investors and relevant authorities.

Qatar’s Chief Investment Authority Chief Executive Officer Mansoor Bin Ebrahim Al Mahmoud told Bloomberg’s Qatar Economic Forum that:

“cryptocurrencies need a bit of maturity before we make our view about investing.”

In terms of the most mainstream cryptocurrency, Bitcoin, it reached an all-time high of $64,854 on April 14 this year, and it has now fallen by half its price. At the time of writing, Bitcoin was trading at $34,943 during the intraday, surging more than 5%, according to CoinmarketCap.