New York City: Dubai is the global financial hub in the Middle East. It’s therefore no surprise that the city has become an international cryptocurrency hub in just one year after making blockchain technology a central focus of its economic strategy at the World Government Summit 2018. But Dubai’s use of blockchain technology goes beyond just cryptocurrency. In this article, we’ll cover all you need to know about Dubai’s sudden rise as a leading blockchain hub, including how it all started and where this unique experiment might be headed in the future!
Why Dubai became global crypto hub by harnessing the power of blockchain technology
Legal & regulatory support
Blockchain and cryptocurrency are not one and the same. Blockchain is a technology that exists on a network, while cryptocurrencies are tokens or coins on that network. The Dubai government in particular has taken a proactive approach to harnessing the power of blockchain technology for its various sectors, including healthcare, energy, education, transport, and tourism. This forward-thinking policy has helped Dubai become an international centre for blockchain adoption and innovation.
This year at Consensus 2018 – one of the world’s largest gatherings for cryptocurrency enthusiasts – Dubai was named as host city for 2020’s summit. In 2017, Dubai launched its Global Blockchain Council with 27 members from various sectors such as government departments and private sector companies to explore and foster new use cases for this emerging digital economy.
The low cost of doing business in Dubai
Dubai is an international trade and finance center with a deep water seaport. The cost of doing business in Dubai is low compared to other major cities, due to low tax rates and minimal government involvement. This means that many businesses looking to expand their operations internationally are now considering Dubai as a viable option. Dubai has been able to capitalize on this opportunity, attracting both international and local investors who want to take advantage of these benefits.
A forward-thinking populace
While Dubai is known as a global tourist destination, it’s also becoming a leader in emerging technologies. As such, Dubai has become an international center for commerce and finance because it’s home to many high-tech companies that are using cutting-edge technologies like artificial intelligence, 3D printing, and virtual reality. One of these new innovations is blockchain. Blockchain is a type of distributed ledger technology that facilitates secure transactions without requiring a central authority to oversee them. With this type of digital ledger system, no one person can hack or tamper with the information on the network because it isn’t stored in just one place. It’s not just startups and small businesses that are exploring how to use blockchain.
The UAE has been among the world’s leaders in high-tech infrastructure, which includes a state-of-the-art telecommunications network. The country also ranks as one of the most competitive economies in the region and has been hailed for its economic vision.
The government’s strategy to diversify Dubai’s economy away from oil exports and develop new industries such as tourism and knowledge-based businesses also fostered an environment that attracted some of the world’s leading innovators, entrepreneurs, scientists and thinkers.
This was further boosted with the implementation of Dubai 2020 – a vision to transform Dubai into a city that is designed around people rather than cars, with seamless connectivity between work, life and play.
Dubai has always had a natural advantage in finance and trade due to its geographical location. The city is located on a peninsula with access to both the Persian Gulf and the Indian Ocean, making it an ideal spot for trade routes. It also has proximity to major ports like Jeddah, Saudi Arabia, which are home to some of the world’s largest shipping companies. The Dubai International Financial Center (DIFC) was established in 2004 as a free economic zone for international banking and is now home to more than 500 banks from over 100 countries.
Alongside this, Dubai’s population is made up largely of young professionals who are interested in new technologies and open to change.