In an interview with Sky News Arabia, the Dean of the Faculty of Science and Technology at IE Madrid University, Dr. Ikhlaq Sidhu, said that regulations were one of the main obstacles to the adoption of blockchain technology in many global markets, adding that the UAE and the Gulf countries are taking the lead in developing Progressive legislation aimed at supporting innovation in this field.
Sidhu pointed out that among the prominent examples of these efforts is the role played by the Virtual Assets Regulatory Authority in Dubai (VARA) andAbu Dhabi Global Market (ADGMAs pioneers in this field, we contribute to facilitating the adoption of technology by supporting digital innovation and developing financial markets.
The professor is considered one of the most prominent experts in the field of technology, as he is the author of the book “Innovation Engineering” and the creator of the course (Data-X Course) is well-known in Berkeley, and more than 50 patents have been registered in his name in the field of Internet communication technology.
Speaking about the sectors that will witness the greatest transformation thanks to technology Blockchain By 2030 in the UAE and the region, Sidhu expects: “The financial services sectors, including cryptocurrencies and decentralized finance (DeFiSmart contracts, in addition to the real estate, energy trading, and gaming sectors, are among the main areas that will benefit from this technology in the region… as these sectors are considered pivotal in achieving financial innovation and enhancing efficiency and transparency.”
Speaking on the sidelines of the Future Blockchain Summit 2024, Sidhu explained that blockchain technology will bring about a fundamental change in the education sector in the UAE and the GCC countries, by enabling secure and reliable digital certificates.
Sidhu added that local regulators are preparing for this shift by implementing regulatory legislation to protect consumers, noting that decentralized finance represents a challenge in the region due to the complexity and accumulation of data since 2012.
Regarding the impact of blockchain technology on the digital economy in the UAE, Sidhu pointed out that blockchain technology will support achieving the goals of the government’s vision by enhancing the infrastructure of smart cities, in addition to financial inclusion and providing innovative solutions for financial inclusion. Technology will also contribute to enhancing economic diversification, which supports sustainability and long-term growth.
As for cooperation between Gulf governments and global regulatory bodies, Sidhu stressed that Gulf governments are working to enhance cooperation with international organizations by establishing innovation funds and partnerships that aim to ensure cross-border compliance, especially in the field of regulating virtual assets and decentralized finance.
In conclusion, Sidhu expects that these efforts and legislation will have a significant impact on the financial system in the region, especially in the banking and investment sectors, which will strengthen the position of the UAE and the Gulf countries as leading financial centers in the field of technological and digital innovation.
