Blockchain technology was no less than a show stopper of last year which not just transformed the finance industry but marked the beginning of the fourth industrial revolution too. Indeed, it has been now accepted by major financial institutions across the US and Europe. The Middle East finance domain has also foreseen the immense potential and benefits of this unalterable digital information recording system which can store a huge amount of data. It is now looked upon for maintaining complex financing contracts as well as Shariah-compliant transactions.
The blockchain-based systems and smart contracts not only are improving the efficiency of the systems but there is a significant enhancement in the monitoring of financial transactions also. Emirates NBD banking group of UAE is one of the first banks that begun the blockchain integration in the banking services. The main objective of using blockchain in their systems was to strengthen the authenticity of a cheque-based payment process along with the reduction in the fraudulent activities.
Similarly, UAE-based Al Hilal Bank became a pioneering example in the execution of sukuk transaction through blockchain at the Abu Dhabi Global Market, as mentioned by Gulf-Times. CEO of Al Hilal Bank, Alex Coelho stated that blockchain is unlocking of new opportunities and is a completely robust system that works in compliance with Shariah. The finance industry of Middle East is going through the upgrade phase of technology which is elevating their position on the blockchain industry.
Tech Trends of Middle East For 2019
According to IDG Connect, a report by tech giant Accenture unveiled that the executives in the region of Middle East are looking forward to invest in Artificial Intelligence, Blockchain and Internet of Things in the coming year. In addition to this, it is future added that Abu Dhabi and Dubai can become the centers for blockchain finance industry in the coming years.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]