As part of its initiative to transform its sector from being paper-based to online systems, the executive arm of the Dubai government dealing with land has signed a working memorandum with UAE Mashreq bank to launch a new system based on blockchain technology. The blockchain system will be deployed to handle the issuance of mortgages and also manage the mortgage systems in the United Arab Emirates.
Besides just streamlining its sector by getting rid of paper-based systems, Dubai land department (DLD) and UAE Mashreq Bank will be pushing Dubai’s 10x initiative to the next level. While commenting on the new partnership with UAE Mashreq Bank Sultan Butti Bin Mejren director general of DLD said;-
“The deployment of the new e-mortgage system based on DLT technology is part of our efforts to upgrade systems in place and propel our current systems from being paper-based to full automation.”
Uses of the new system
The primary goal of launching an e-mortgage system based on blockchain is to speed up the process, reduce offices visits, and also strengthen the home loan registration process. All of the latter will help digitize systems improve services delivery and also help attract foreign investment in the real estate sector. Besides all the above, the electronic e-mortgage system will come in handy at linking registration procedures from Mashreq Bank mortgage holders with DLD new system. The latter will ensure all property purchase transactions through mortgages are updated immediately on the new blockchain based system. Furthermore, the blockchain systems will enable easy updating of data relating to payments defaults together with liquidations.
While the above isn’t the first blockchain based system to be launched in Dubai, it shows the extent to which Dubai is pushing its 10x initiative to be ahead of other countries across the globe. Another system dubbed REST, which is Real Estate Self Transaction still based on blockchain technology was launched last year. Similar to the e-mortgage system, REST is all about digitizing the management of real estate transactions to eliminate systems dependence on paper. However, through REST, DLD will also reduce procedures when it comes to brokerage transactions.
With the e-mortgages blockchain systems gone live, DLD is still looking for new partners to help it push its agenda of streamlining systems in place further through integrating distributed technology based on blockchain technology.