The UAE’s strategy will make it a hub of the digital economy
In recent years, the country’s banking and financial services sectors have witnessed a rapid evolution of digital transformation that encompasses the digitization of existing services and the launch of a number of digital-only services.
While digitization of services has proven to be more efficient and convenient, the lower costs, ease of legal compliance, and error-free transactions make it popular among end users and service providers.
Recognizing the clear benefits of digitalization, the UAE government has been strongly behind a comprehensive strategy to drive the future of the country’s digital economy. In this context, the establishment of the UAE Council for the Digital Economy comes with a clear mandate to drive the implementation of digital economy initiatives.
The UAE’s clear and focused approach to a digital future for its economy follows some of the recent initiatives such as the regulations introduced to govern virtual assets, the latest being the Government of Dubai’s law governing virtual assets and the establishment of an exclusive regulator to supervise the sector. The various regulators of the on-shore and off-shore financial markets in the country have put in place or are in the process of putting in place regulatory frameworks for virtual assets and digital transactions.
In addition to the key advantage of having an advanced broadband telecommunications infrastructure, the early adoption of blockchain-driven financial technology is giving the UAE a head start in its digital economy ambitions.
As businesses around the world prepare for Metaverse, the next generation of the Internet that combines virtual reality, virtual money and virtual transactions, the United Arab Emirates, with a clear digital economy strategy, is set to become a leader in Metaverse finance (MetaFi), a combination of decentralized finance (DeFi), centralized finance (CeFi) and traditional finance (TradFi), with new products specifically designed to meet the unique needs of the new economic ecosystem .