The Dubai Multi Commodities Centre, a Dubai free zone for several companies involved in trading activities registering over 2000 companies last year alone has formally begun crypto, blockchain business in its newly established crypto centre. In a tweet on the 24th of May,2021 the DMCC stated that they were now open for crypto entrepreneurs and SMEs in the crypto business, blockchain-enabled trading platforms and firms that offer, issue, list and trade crypto assets.
This new development will include all types and sizes of crypto businesses, including companies that create avenues for blockchain trading and seeks to assist with the expansion and implementation of blockchain mechanisms.
The Crypto Centre stems from the DMCC’s partnership with Switzerland’s CV Labs (the organisation behind the Swiss government-backed Crypto Valley). It is a component of the DMCC’s Crypto Valley which is an avenue for blockchain and cryptographic mechanisms in the UAE. It was established in January 2020 to support start-ups that are in their beginner stage by providing incubators, mentorship programmes, training in blockchain and entrepreneurship, provision of working spaces, funding and innovation services for corporate clients.
The mechanism behind cryptocurrencies such as Etherum and Bitcoin is Blockchain. It is a digital and growing list of records called blocks. These blocks are linked using cryptography(a technology for secure communications on an open ledger). Each block consists of a cryptographic hash of the previous block, a timestamp, and transaction data that are difficult to tamper with as each change creates a new record.
According to reports from the US-based International Data Corporation, since 2016, Blockchain spending in Middle Eastern and African countries has grown at a rate of over 70% and has been projected to reach $307 million this year. The UAE is one of these countries. The Emirates Blockchain Strategy 2021, announced in 2018 aims to covert about half of all government transactions onto a blockchain platform by the end of 2021. By adopting blockchain technology, the country is aiming to reduce work hours by 77 million, save Dh11 billion in transaction and regular document processing costs and do away with the 398 million printed documents annually.
Ralf Glabischnig, founder and board member of CV VC-parent company of CV Labs which runs co-working spaces in the Swiss city of Zug, Vaduz in Liechtenstein and Dubai houses mentioned that Dubai’s Crypto Centre is expected to perform better than many of the leading blockchain spaces in the next 18 months. He commented that Dubai did a great job last year and the whole world is watching its technology growing at a rapid rate and with support from the government and interest from its flourishing business sectors, Dubai is set to emerge as a global hotspot and hub for innovative blockchain companies and applications.
The DMCC new Crypto Centre intends to be home to a broad system designed for innovators, entrepreneurs and pioneers in the fields of crypto and blockchain technology while supporting all crypto business. The number of entities that the centre intends to accommodate has not been disclosed but the executive director, Ahmad Hamza mentioned that over the next few weeks and month, the centre is expected to be filled with companies looking to expand their crypto businesses. He described the new innovation as a fantastic new development stating that crypto and blockchain technology has the potential to transform global trade and supply chains.