Dubai government invests heavily in blockchain research, with investment expected to reach $300 billion in the next four years

An innovation center established by Sheikh Mohammed bin Rashid , Vice President and Prime Minister of the United Kingdom and Ruler of Dubai, has announced the establishment of a research committee dedicated to studying blockchain technology.

The innovation center is called the Museum of the Future and aims to encourage innovation and promote new technology research in the Middle East. An important part of the project is the construction of a central building (estimated cost of $136 million), which is expected to be completed in 2017 .

According to the information revealed, the International Blockchain Committee will be composed of 32 members, including government agencies (Smart Dubai Authority, Smart Dubai Government, Dubai Multi Commodities Center ( DMCC ), international companies (Cisco, IBM , SAP , Microsoft) and blockchain startups ( BitOasis, Kraken and YellowPay ).

Looking back, the Museum of the Future has also supported emerging technologies, such as drones, as well as new technologies for wider applications in education, healthcare and tourism. In addition, Sheikh Khalifa bin Zayed Al Nahyan’s statement declared 2015 the “ Year of Innovation ” for the Middle East country .

According to a press release from the Dubai Government Media Authority, the International Blockchain Committee will explore and discuss the potential applications of blockchain technology, with the ultimate goal of highlighting how blockchain technology can affect domestic finance and non-finance.

In a statement, Dubai Future Bank Foundation CEO Saif Al ALeeli explained the importance of the project, citing data he provided, which he believes will see global blockchain investments reach $ 300 billion in the next four years.

Al Aleeli said:

“ The International Blockchain Council will launch several projects to highlight the importance of blockchain and digital currencies, promote them, explore their advantages and disadvantages, and ultimately draw a roadmap for the best use cases of this emerging technology. ”

He further pointed out that the committee will hold an annual meeting every year, which will " invite high-level people, organize special discussions, inspirational workshops, and programming marathons. "

Dr. Aisha Bin Bishr , Director of Smart Dubai, the body overseeing the development of smart cities in Dubai, added:

The International Blockchain Commission will work to unite public and private stakeholders to jointly research blockchain technology.

Bin Bishr said in the announcement:

“ New technologies such as blockchain offer tremendous opportunities for all service providers to reinvent transactions, enable a more seamless transaction experience and protect all our customers, ”

The CEO of the Dubai International Financial Centre Authority ( DIFCA ) made the additional clarification. According to the International Monetary Fund ( IMF ), DIFCA , the operator of Nasdaq Dubai , formerly the Dubai International Financial Exchange, is a government body that reports directly to the UAE president on “ economic development, economic planning, company registration, company law and data protection management . ”

First pilot project

As part of its official announcement, the Museum of the Future detailed several pilot projects that will be implemented.

According to the announcement, the first pilot project will see Dubai-based bitcoin services startup BitOasis partner with the Dubai Multi Commodities Centre ( DMCC ), a multi-commodity marketplace in Dubai established in 2002 .

According to Ahmed Bin Sulayem , Executive Chairman of the Dubai Multi Commodities Centre Authority , BitOasis will work with DMCC to “ leverage blockchain ledgers to ensure flexible contract and registration procedures ” so that DMCC will “ always be ahead of the curve ” and provide technical guidance to other market participants.

The second project will see DMCC partner with bitcoin exchange Kraken to help DMCC catalyse blockchain technology in selected Islamic finance operations. Bin Sulayem said:

“ So it’s only natural that the next step for DMCC is not just to bootstrap BitOasis and Kraten Bitcoin Exchange projects, but to work with the Dubai Blockchain Council to do everything we can to bring more of these projects to the market. ”  

Confusion  

Although the UAE has sent strong signals, from the announcement they released, we can see that their understanding of blockchain technology is still in its early stages.

For example, based on the phrases like “ blockchain supports more than 2 million bitcoin wallets ” , we can infer that their organization does not distinguish between the bitcoin wallet startup “ blockchain ” and the distributed ledger technology behind bitcoin , which we call blockchain. The notice also reads: “ The blockchain is available in 15 languages ​​around the world, and users can send bitcoins via email or text messages while maintaining user privacy and security . ” Obviously, this blockchain is not the one referred to by the International Blockchain Committee.

Elsewhere, the authors of the notice appear to have blurred the lines between bitcoin, digital currencies and blockchain, which generally refers to distributed ledger applications, the report states.

“ Blockchain Markets reports that Bitcoin’s 24- hour average trading volume is $ 100.56 million , while the Bitcoin market cap is $ 6.8 billion. ”

Still, the ambitious plan marks a milestone for blockchain development in a region that has been relatively quiet on major blockchain news.