The post Start-up Ziina innovates with UAE Central Bank licence appeared first on AIBC.
]]>The SVF licence will empower Ziina to offer a comprehensive suite of financial services. These include business and consumer accounts, peer-to-peer payments, bill pay, external payment link issuance, QR codes for remote point-of-sale transactions, and prepaid card services. Ziina will also serve as a principal member of networks such as Visa and Mastercard, offering Banking Identification Number (BIN) sponsorships. These services aim to support over 557,000 businesses, enhancing operational efficiency and fostering growth.
Small and Medium Enterprises (SMEs) constitute 94 percent of all companies in the UAE and contribute 63.5 percent to the non-oil gross domestic product (GDP). Despite their significant role in the economy, SMEs often face cash flow challenges, primarily due to delayed client payments. Ziina’s expanded services are designed to address these challenges, providing businesses with the necessary tools to enhance operational efficiency and stimulate growth.
The UAE is rapidly transitioning towards a cashless society, with SMEs playing a crucial role in this shift. As per estimates, 60 percent of consumers plan to go cashless by 2024. The digital payments market in the MENA region is projected to reach $9 billion by 2028, marking a 124 percent increase from 2021. This growth is driven by convenience and accessibility. Current trends in the UAE indicate a strong preference for credit cards and digital wallets, particularly for online transactions. The popularity of payment options like Buy Now Pay Later is on the rise, aligning with the expanding e-commerce sector.
Faisal Toukan, CEO and Co-Founder of Ziina, underscored the significance of the license, stating, “Securing this license is a monumental step for us, reinforcing our commitment to the highest standards of compliance and security. The UAE’s Central Bank has outlined a bold vision for financial technology, and we are thrilled to work closely with their team to support this vision. This regulatory approval allows us to expand our services further, strengthening our role as a dedicated financial partner for SMEs—the true backbone of the UAE’s economy—by offering them a fast and secure way to send, receive, and grow their money.”
As part of the UAE’s ambitious digital economy strategy, the country aims to double the digital economy’s contribution to its GDP from 9.7 percent in 2022 to 19.4 percent within the next decade. This strategy demonstrates the UAE’s commitment to becoming a global hub for digital innovation and economic growth. Ziina’s growth is fuelled by the UAE’s robust infrastructure, extensive connectivity, and dynamic entrepreneurial environment. The Central Bank’s nine-pronged Financial Infrastructure Transformation (FIT) Programme, which includes initiatives like a domestic card scheme and an instant payments platform, aims to support financial inclusion and enable a cashless society through digital payments.
Ziina’s suite of financial services is designed to support businesses at every stage, fostering an ecosystem conducive to long-term success and growth. The Ministry of Economy projects that the number of SMEs will increase to over 1 million by 2030, further highlighting the importance of dependable financial services.
In addition to securing the licence, Ziina is reportedly in the process of raising a substantial financing round from institutional investors. This funding is intended to support Ziina’s growth strategy throughout the Middle East, further strengthening its ability to offer essential financial services to the region’s economic landscape.
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]]>The post Forex implications of the UAE Egypt Ras al-Hikma development project appeared first on AIBC.
]]>| Key Takeaways | Details for Investors |
|---|---|
| Largest foreign direct investment in Egypt’s history | The deal marks the largest FDI in Egypt, potentially attracting over $150 billion |
| Boost to Egypt’s economy and foreign reserves | Expected to alleviate Egypt’s economic struggles and bolster foreign currency reserves |
| Integral part of North Coast Urban Development Plan | Forms a crucial component of a comprehensive urban development strategy for the region |
| Diverse development scope | Encompasses residential, tourism, industrial, financial, and logistical facilities |
| Strategic partnership between Egypt and the UAE | Demonstrates a strong alliance between the two nations, fostering political and economic support within the region |
The backdrop to this development is Egypt’s ongoing economic crisis, characterized by a chronic scarcity of foreign currency inflows. This situation has led to a sharp depreciation of the Egyptian pound against the dollar in informal exchange markets. Amidst this challenging economic landscape, the Egyptian government has been actively seeking ways to attract foreign investment and boost its forex reserves.
The Ras al-Hikma project, described by Prime Minister Mostafa Madbuly as the “largest foreign direct investment deal” in Egypt’s history, is a strategic response to these economic challenges. The project, which will span an area of 170 million square kilometres on the northwest coast, is expected to bring in a total of $150 billion in foreign investments.
The forex implications of this project are manifold. Firstly, the UAE will pay $24 billion of the upfront investment in liquid foreign currency. This influx of foreign currency will provide a much-needed boost to Egypt’s forex reserves and could potentially stabilize the Egyptian pound’s exchange rate.
Secondly, the UAE will convert $11 billion of its existing deposits in the Central Bank of Egypt into investments for ADQ to use in establishing the project. This conversion of deposits into investments will not only reduce Egypt’s debt repayment burden but also inject additional foreign currency into the economy.
The project is also expected to generate substantial forex inflows in the long run. With plans for residential areas, hotels, resorts, a free zone for light and tech industries, a financial and business district, and an international marina for yachts and cruise ships, the city is poised to attract foreign tourists and businesses, thereby earning valuable foreign currency.
Moreover, the establishment of an international airport south of the city will further facilitate foreign tourism and trade, leading to increased forex earnings. The Egyptian government’s 35 percent stake in the project also ensures that a significant portion of these forex inflows will directly benefit the country’s economy.
In conclusion, the Ras al-Hikma project represents a strategic move by Egypt to attract foreign investment, boost its forex reserves, and stabilize its currency. By leveraging the power of forex, Egypt is not only addressing its immediate economic challenges but also laying the foundation for long-term economic growth and stability.
Stop Press – AIBC Africa takes place in Cape Town between 11-13 March !
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]]>The post Antara: The Intersection of Film, NFTs, and Decentralized Finance appeared first on AIBC.
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The post Antara: The Intersection of Film, NFTs, and Decentralized Finance appeared first on AIBC.
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]]>The post Unveiling the future of fan engagement: A paradigm shift in sports entertainment appeared first on AIBC.
]]>The post Navigating the AI Landscape: Building Trust in a Tech-Driven World appeared first on AIBC.
]]>The post Navigating the AI Landscape: Building Trust in a Tech-Driven World appeared first on AIBC.
]]>The post Institutional adoption of digital assets: Keynote by Alexander Filatov appeared first on AIBC.
]]>While many focus on the price of Bitcoin, Filatov drew attention to the adoption levels of cryptocurrencies, which he estimates to be between 25 to 35 percent. He believes that crypto has now arrived and is here to stay.
Solutions around cross border payments, trade finance and supply chain management require bridges between legacy systems and blockchain networks to enable seamless interoperability and data transfer.”
He cited the example of the Plexus PayPal project and suggested that Non-Fungible Tokens (NFTs) can bridge the gap between companies and consumers, eliminating intermediaries like Google and Facebook.
A strong advocate for digital twins, Filatov sees their growing adoption as a significant driver for blockchain and crypto infrastructure development and performance. He noted enhanced performance in scalability, speed throughput, latency, finality, interoperability between chains, security, compliance, financial infrastructure integration, and institutional-grade custody solutions.
He mentioned banks in Switzerland that handle both fiat and crypto, and platforms like Coinbase and Gemini. He also discussed emerging trends in blockchain scalability, such as sharding, layer two solutions, sidechains, consensus algorithm innovations, quantum-resistant blockchains, state channel networks, off-chain computation, shard chains, blockchain inter-operability protocols, and layer three solutions.
Filatov acknowledged the recent solution by Solana, called Firedance, and discussed layer two protocols, swaps, and bridges, which he finds slightly controversial. He expressed intrigue over the latest solution from Chainlink and noted the increasing focus on inter-operability.
He warned of the significant amount of crypto being stolen each year and stressed the importance of security and compliance in smart contracts. Filatov is an advocate for advanced cryptography, smart contract auditing, secure key management solutions, and compliance features like identity management, KYC/AML processes, and regulatory reporting functionalities.
To conclude his keynote, Filatov reiterated the need for integrating blockchain infrastructure with traditional financial systems and the importance of institutional-grade custody solutions, secure storage systems, multi-signature wallets, and custody solutions complying with industry standards and regulations. He believes that these steps are crucial for the institutional adoption of digital assets and for boosting infrastructure.
Alexander Filatov is an entrepreneur and former corporate executive with over 25 years of experience in management and private enterprise. He gave his keynote at the AIBC Eurasia being held in Dubai this week.
Filatov started his career at Procter & Gamble in 1994, and has since held several executive positions in strategy and M&A, including CEO roles in multibillion-dollar manufacturing corporations in various industries.
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]]>The post Tokenizing real-world assets: The future of Blockchain in Dubai appeared first on AIBC.
]]>Tokenization Defined
Tokenization –? the process of converting real-world assets, such as real estate or art, into a digital form that can be sold, traded, fractionalized, collateralized, and more. This broad definition encapsulates the essence of blockchain technology—taking anything and placing it in a new digital form.
The Value in Tokenization
The value of tokenization, particularly in providing access to capital for asset owners was also discussed. Traditional methods, such as mortgages, have limitations, making it challenging for many to participate. However, through tokenization, asset owners can create new ways of accessing capital by allowing individuals to own fractional pieces of assets, opening up opportunities for both asset owners and investors.
Real-world Applications
Illustrating the concept,? examples of tokenizing high-value art pieces and real estate were shared. By fractionalizing these assets, individuals can own a piece of iconic structures like the Burj Khalifa, enabling exposure to operating profits and capital appreciation. This democratization of access to assets, combined with regulatory advancements, creates a hybrid approach that bridges traditional finance with cutting-edge technology.
“I’m a futurist. I love contemplating how tomorrow is going to be better than today. In the confluence of DLT tech – how can we use this in a way that actually makes a meaningful difference in the way society operates?” asks Scott Thiel.
He goes on to say, “The real potential of this tech is to fundamentally change the way the financial systems work – which are very exclusive. To democratize finance on both sides of the ledger – whether its asset owners or asset issuers. The traditional financial ecosystem only services a very small part of the community.”
Regulatory Framework in Dubai
Also highlighted was the importance of regulatory frameworks, particularly in Dubai, as a catalyst for the growth of the tokenization space. The emergence of Vara as a new regulator, unencumbered by traditional financial service regulations, has allowed for experimentation and iteration. Every virtual asset, including cryptocurrencies, digital art NFTs, and utility tokens, falls under the same definition of a virtual asset, providing clarity and certainty for market participants.
“I’m really passionate about making a difference in people’s lives. One policy, one change in regulation, can make a huge difference in the experience and lifestyle of an individual,” opines Mohammed J. Sear.
Advice for Individuals
As the conversation concluded,? advice for individuals looking to enter the tokenization space was put forward – emphasizing the significance of understanding the regulatory landscape and encouraged individuals to explore opportunities in a market where experimentation is welcomed.
These insights shed light on the transformative potential of tokenization and the unique position Dubai holds in fostering blockchain innovation. The intersection of regulatory advancements, diverse asset tokenization, and increased accessibility presents a compelling landscape for individuals and investors alike to explore the evolving world of blockchain technology.
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]]>The post How the MENA region is becoming a hotspot for crypto and blockchain funding appeared first on AIBC.
]]>During AIBC Eurasia this morning taking place in Dubai, some of the main trends and challenges that are shaping the MENA crypto and blockchain ecosystem were explored based on the insights from a panel discussion.
One of the key drivers of the crypto and blockchain growth in the MENA region is the proactive and supportive role of the governments, especially in the UAE and Saudi Arabia. These countries have launched various initiatives to expand the development of the sector, such as free zones, regulatory sandboxes, fiscal stimulus, government subsidies to match funds and public-private partnerships.
For instance, the Dubai International Financial Centre (DIFC) is the largest fintech and innovation ecosystem in the MENA region, accounting for over 60 per cent of all those in the region. Through the DIFC Innovation Hub, fintechs have a growth platform that includes access to capital, infrastructure, regulation and talent. The DIFC also offers an Innovation Testing License (ITL) that allows fintechs to test their solutions in a sandbox environment before applying for a full licence.
Another example is the Saudi Arabian Monetary Authority (SAMA), which has launched a regulatory sandbox for fintechs to experiment with new products and services in a controlled environment. SAMA also matches all investments made by venture capitalists in fintech startups in the country, up to a maximum of $13.3 million per startup.
The MENA region is also showing strong openness to crypto, with UAE and Bahrain leading the way in crypto adoption and regulation. UAE is home to more than 60 per cent of the crypto startups in the region, and has issued licences to several crypto exchanges, such as BitOasis, Rain and Bitex. Bahrain has also granted licences to crypto platforms, such as Rain and CoinMENA, and has introduced a comprehensive regulatory framework for crypto assets.
Another factor that contributes to the crypto and blockchain boom in the MENA region is the huge market potential and the lack of established financial institutions. Compared to mature markets, such as the US and Europe, 67 per cent of the adult population in the MENA region are either underbanked or unbanked, 136 million adults. This creates a huge opportunity for fintechs to offer alternative and inclusive financial solutions, such as digital wallets, remittances, lending and payments.
At the same time, the MENA region demographics offer huge opportunities. More than 60 percent of the population is under the age of 30, compared to one-third in Europe. MENA’s population is also extremely tech-savvy and ready to embrace new digital technologies. In UAE, for instance, already more than 50 per cent of the population uses digital wallets.
The MENA region is also home to some of the most innovative and disruptive crypto and blockchain projects in the world, such as Biconomy, a local project that grew the most in different protocols, such as Ethereum, Polygon and Binance Smart Chain. Biconomy is a platform that simplifies the user experience of decentralized applications (dApps) by enabling gasless transactions, meta transactions and relayer networks5.
Another example is Foodics, a Saudi Arabia-based cloud-based technology and payments platform for restaurants, that raised $20 million in a Series B round led by Sanabil Investments and STV. Foodics offers a point-of-sale system that integrates with various payment methods, including crypto, and enables merchants to accept digital currencies such as Bitcoin, Ethereum and Ripple.
The MENA region is also attracting a lot of talent from around the world, especially in the crypto and blockchain space. Many Europeans discovered Dubai during the Covid-19 pandemic and decided to stay there, attracted by the favourable weather, lifestyle and business opportunities. Dubai has the reputation of being a serious player in the crypto and blockchain space, and has been very welcoming to both founders and investors.
However, the region also faces some challenges that need to be addressed in order to sustain and accelerate its growth. One of the challenges is the cost of living in Dubai, which is high and not affordable for many developers and entrepreneurs1. Another challenge is the lack of crypto-friendly banks and banking partners, which makes it difficult to take money out in crypto or convert crypto to fiat.
Moreover, the region still needs to improve its regulatory clarity and consistency, as different countries have different rules and standards for crypto and blockchain4. For instance, while UAE and Bahrain have been progressive and supportive of crypto, other countries such as Egypt and Algeria have banned or restricted the use of crypto.
The expert panel concluded that the MENA region is becoming a hotspot for crypto and blockchain ventures and startups, thanks to a combination of factors such as government support, market potential, talent attraction and innovation. The region has witnessed a surge of activity and investment in the sector, and has produced some of the most innovative and disruptive projects in the world.
However, they identified that the region also faces some challenges that need to be overcome, such as cost of living, banking access and regulatory clarity.
The future of crypto and blockchain in the MENA region looks bright and promising, as the region continues to embrace and leverage the transformative potential of these technologies.
The AIBC Eurasia panel was moderated by Mary Pedlar, Founder of Input Communications Agency (photo above, first right).? The expert panellists were: Danilo S Carlucci, Founder and CEO, 37xDubai, (photo second left), Anton Golub,? Venture Partner- Full Stack VC (photo above, first right), and Paula Tavangar, Partner & CIO, Injaz Capital (photo above, second left).
Stop Press – AIBC Eurasia takes place in Dubai 25 – 27 February !
AIBC Africa takes place in Cape Town between 11-13 March !
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]]>The post Take longer strides in a more purposeful direction advises Scott Stornetta appeared first on AIBC.
]]>During the keynote, Stornetta emphasized that their early theoretical papers not only contributed to blockchain theory but also led to the operationalization of the world’s first blockchain on October 13th, 1991—a system still in continuous operation today. While the blockchain initially carried out modest tasks, its uninterrupted functionality since 1991 underscores its enduring nature.
The audience gained insights into Stornetta’s extensive background in technology, including his pioneering work on neural networks for his Ph.D. dissertation at Stanford in 1987. He shared a broader perspective on the technological landscape, urging participants to consider the long-term implications of blockchain and AI.
Stornetta raised critical questions about the practicality of blockchain applications, challenging businesses to demonstrate real value rather than merely riding the hype. As an investor in both blockchain and AI, he emphasized the importance of identifying use cases that genuinely add value to the industry.
Turning the spotlight on AI, Stornetta outlined three scenarios for its future development. He discussed the potential challenges of distinguishing between reality and AI-generated content, signaling a need for careful consideration as technology advances.
New tech leads to new jobs
He also drew parallels between the fear of job loss during the industrial revolution and the concerns surrounding AI today. He emphasized the historical trend of technological advancements leading to the creation of new jobs rather than widespread unemployment. Using examples like the spinning jenny, threshing machine, and switchboard operators, Stornetta illustrated how each technological leap ultimately created new opportunities and industries.
With the agricultural revolution the concern was that all of the farming jobs were going to be lost, says Stornetta. “And guess what? They were.? Which is why we have, what, 60, 70, 80 percent unemployment rates right now? No, we don’t.? Because other jobs got created.”?
“If we can stop worrying about the transient and worry about the long run,? increased productivity creates increased? GDP, which creates more disposable income, that’s what creates jobs.”
AI Realities and Misconceptions
Delving into AI, Stornetta dismissed the overblown concerns of AI enslaving humanity, citing the consensus among AI researchers that such scenarios are highly unlikely. He emphasized the importance of individuals mastering AI tools and learning to use them effectively, highlighting the role of human intelligence in conjunction with technology.
Addressing the rise of deepfake technology, Stornetta warned of the impending difficulty in distinguishing between reality and artificially generated content. He amusingly referenced a deepfake of Tom Hanks endorsing a dental plan and emphasized the need for tools to assert identity in the face of deep fakes.
“We will lose the ability to distinguish between the truth and what is real and the falsity and what is artificial. If you are not in a face to face physical interaction, reality will become a blur.
“When it comes to innovation, in spite of all advancements, what matters begins and ends with people”
In a twist, Stornetta teased an upcoming revelation about leveraging blockchain, Web3, and deepfakes to address concerns simultaneously. Encouraging the audience to follow his social media feeds for more details, he hinted at a solution that could potentially redefine the landscape of identity verification and privacy protection in the age of AI.
Closing with advice for staying relevant in the face of rapid innovation, Stornetta urged attendees to embrace technology rather than fearing it. He emphasized the significance of augmented capabilities and enhanced skills through technology, positioning individuals as the driving force in the evolving economy.
Scott Stornetta’s keynote left the audience with a mix of historical insights, futuristic perspectives, and a tantalizing promise of a solution at the intersection of blockchain, Web3, and deep fakes.
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]]>The post Dubai has become the go-to place for disruptive tech, says Belal Jassoma appeared first on AIBC.
]]>Dubai’s strategic positioning as a global business hub and gateway to the Middle East, Africa, and South Asia has attracted businesses seeking access to a vast portion of the world’s wealth and opportunities. The city’s geographic advantage, with four to eight hours of flight time to emerging and developed markets, coupled with a well-connected time zone, makes it an ideal location for crypto enterprises.
Beyond its geographical advantages, Dubai has consistently excelled in economic competitiveness, ease of doing business, and providing a high-quality living environment. Its cosmopolitan nature, hosting a diverse international community, further adds to its appeal as a thriving crypto business hub.
“Due to the developing regulatory landscape, the regulators have really caught on now and ramped up the approvals. And that has also attracted more interest from the institutional investors.”?
As the crypto adoption index illustrates, Dubai has surpassed other cities, solidifying its status as a global destination for crypto-related events. The region has seen a surge in interest, investments, and the establishment of a significant Web3 presence, particularly in free zones like DMCC.
Moving towards a knowledge-based economy
“Dubai and the UAE have a vision that really supports disruptive technology in terms of crypto and Web3, of course, but also gaming. Gaming is on the national agenda as we look to diversify from fossil fuels and focus more on developing a knowledge-based economy and AI.”
Despite these successes, Bilal acknowledged some challenges faced by the local crypto industry. Issues such as limited banking support due to perceived high risks and the need for specialized talent are hurdles that the industry is actively addressing.
“A lot more retailers are accepting crypto payments, and you hear more of real world assets tokenization that is happening in our ecosystem as well as the wider UAE.”
He goes on to say that while banks haven’t had the Biggest appetite in opening accounts for crypto businesses – mostly because of their risk appetite –? that he believes that that is changing as more regulations go online and more companies get regulatory licenses. “Banks will open up more as we go forward.”
DMCC, established in 2002, has played a crucial role in fostering the crypto ecosystem. The Crypto Center, initiated in 2021, offers businesses more than just a physical space. Membership includes a desk or office space, along with essential regulatory support, licenses, and visas. However, the real value lies in the community and ecosystem, providing ongoing mentorship, acceleration, innovation, funding, and advisory services.
The DMCC Crypto Center has formed strategic partnerships with industry leaders like Bybit, Brink, Tidify, Solana, Anchor, Boba, DWF Labs, and GAF Capital, fostering a collaborative environment for Web3 businesses.
However, he concludes, none of this would be possible without the support of the regulators.?
“We have a strong relationship with Vara and the Securities and Commodities Authority.”
During the speech, Bilal also highlighted the range of business activities permissible at the Crypto Center, showcasing its flexibility in accommodating various aspects of the crypto industry. Currently hosting nearly 600 Web3 companies, DMCC Crypto Center stands as the largest concentration of such businesses in the region.
As Bilal wrapped up his presentation, questions from the audience, including one from Nova Phoenix of Lyfeblood Social Media DAO in New York City, highlighted the growing interest in bridging the gap between American and Dubai-based Web3 communities. The DMCC Crypto Center aims to continue its role as a facilitator, creating opportunities and connections between these thriving ecosystems.
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