var TRINITY_TTS_WP_CONFIG={“cleanText”:”UAEu2019s blockchain ambitions will improve trade finance for SMEs.u23f8As the United Arab Emirates (UAE) continues to embraceu00a0blockchain technology, experts have identified Small and Medium Scale Enterprises (SMEs) in the country as one of the largest beneficiaries of the pivot.u23f8In au00a0reportu00a0by Edge, SMEs in the UAE can compete with their peers on the global stage following a robust blockchain integration policy. The report points to trade finance as a major benefit for SMEs in the Gulf nation, with traditional methods falling short of global standards.u23f8Traditionally, SMEs in the UAE face an uphill task in securing trade finance, underscored by several bottlenecks, including the presence of intermediaries, stiff penalties and interest, and an absence of trust.u23f8To gain an edge in international trade, experts have cited blockchain systems as a veritableu00a0solution for SMEsu00a0facing trade finance challenges. SMEs can access a broader market for trade finance outside traditional banking institutions, netting affordable financing options.u23f8Blockchainu2019s transparency and immutability featuresu00a0can come in handy for the SME ecosystem, with enterprises leaning on the technology to prove their creditworthiness. A potential integration with AI is expected to provide financial institutions with insights into possible loan defaults and spot anomalies in financial transactions.u23f8Besides proving credit-worthiness, blockchain can eliminate third parties in the value chain, saving both time and costs for SMEs.u00a0Smart contractsu00a0can be deployed to automatically execute trade agreements upon the meeting of certain conditions while eliminating the hassle of paperwork.u23f8With the use ofu00a0public blockchains, parties to an international collaboration will foster greater levels of trust, given the transparency of operations.u23f8u201cBy embracing fintech for trade finance in the UAE, SMEs can tap into a growing ecosystem that supports innovation and entrepreneurship,u201d read the report. u201cThe UAE government has been actively promoting fintech initiatives through regulatory frameworks that encourage collaboration between traditional financial institutions and emerging fintech players.u201du23f8UAEu2019s push into blockchainu23f8The UAE has emerged as the leading country for Web3 in the Middle East, backed by a combination of government and private sector initiatives. Abu Dhabi officials have since rolled outu00a0regulationsu00a0for the control of decentralized autonomous organizations (DAOs), with courts in the city turning to blockchain for efficient processes.u23f8Dubaiu2019s robust digital asset regulation sets it apart from the rest of the world, with a clutch of global service providers scrambling tou00a0obtainu00a0operational licenses in the Emirates. Since 2022, Komainu, GCEX, Bybit, and CoinMENA have snagged approvals from the cityu2019s digital asset watchdog.u23f8Watch: Saeed Mohammed Ali Alhebsiu2014Itu2019s mandatory from UAE leaders to implement blockchainu23f8″,”headlineText”:”UAEu2019s blockchain ambitions will improve trade finance for SMEs”,”articleText”:”As the United Arab Emirates (UAE) continues to embraceu00a0blockchain technology, experts have identified Small and Medium Scale Enterprises (SMEs) in the country as one of the largest beneficiaries of the pivot.u23f8In au00a0reportu00a0by Edge, SMEs in the UAE can compete with their peers on the global stage following a robust blockchain integration policy. The report points to trade finance as a major benefit for SMEs in the Gulf nation, with traditional methods falling short of global standards.u23f8Traditionally, SMEs in the UAE face an uphill task in securing trade finance, underscored by several bottlenecks, including the presence of intermediaries, stiff penalties and interest, and an absence of trust.u23f8To gain an edge in international trade, experts have cited blockchain systems as a veritableu00a0solution for SMEsu00a0facing trade finance challenges. SMEs can access a broader market for trade finance outside traditional banking institutions, netting affordable financing options.u23f8Blockchainu2019s transparency and immutability featuresu00a0can come in handy for the SME ecosystem, with enterprises leaning on the technology to prove their creditworthiness. A potential integration with AI is expected to provide financial institutions with insights into possible loan defaults and spot anomalies in financial transactions.u23f8Besides proving credit-worthiness, blockchain can eliminate third parties in the value chain, saving both time and costs for SMEs.u00a0Smart contractsu00a0can be deployed to automatically execute trade agreements upon the meeting of certain conditions while eliminating the hassle of paperwork.u23f8With the use ofu00a0public blockchains, parties to an international collaboration will foster greater levels of trust, given the transparency of operations.u23f8u201cBy embracing fintech for trade finance in the UAE, SMEs can tap into a growing ecosystem that supports innovation and entrepreneurship,u201d read the report. u201cThe UAE government has been actively promoting fintech initiatives through regulatory frameworks that encourage collaboration between traditional financial institutions and emerging fintech players.u201du23f8UAEu2019s push into blockchainu23f8The UAE has emerged as the leading country for Web3 in the Middle East, backed by a combination of government and private sector initiatives. Abu Dhabi officials have since rolled outu00a0regulationsu00a0for the control of decentralized autonomous organizations (DAOs), with courts in the city turning to blockchain for efficient processes.u23f8Dubaiu2019s robust digital asset regulation sets it apart from the rest of the world, with a clutch of global service providers scrambling tou00a0obtainu00a0operational licenses in the Emirates. Since 2022, Komainu, GCEX, Bybit, and CoinMENA have snagged approvals from the cityu2019s digital asset watchdog.u23f8Watch: Saeed Mohammed Ali Alhebsiu2014Itu2019s mandatory from UAE leaders to implement blockchainu23f8″,”metadata”:{“author”:”Wahid Pessarlay”},”pluginVersion”:”5.7.4″}; |
As the United Arab Emirates (UAE) continues to embrace blockchain technology, experts have identified Small and Medium Scale Enterprises (SMEs) in the country as one of the largest beneficiaries of the pivot.
In a report by Edge, SMEs in the UAE can compete with their peers on the global stage following a robust blockchain integration policy. The report points to trade finance as a major benefit for SMEs in the Gulf nation, with traditional methods falling short of global standards.
Traditionally, SMEs in the UAE face an uphill task in securing trade finance, underscored by several bottlenecks, including the presence of intermediaries, stiff penalties and interest, and an absence of trust.
To gain an edge in international trade, experts have cited blockchain systems as a veritable solution for SMEs facing trade finance challenges. SMEs can access a broader market for trade finance outside traditional banking institutions, netting affordable financing options.
Blockchain’s transparency and immutability features can come in handy for the SME ecosystem, with enterprises leaning on the technology to prove their creditworthiness. A potential integration with AI is expected to provide financial institutions with insights into possible loan defaults and spot anomalies in financial transactions.
Besides proving credit-worthiness, blockchain can eliminate third parties in the value chain, saving both time and costs for SMEs. Smart contracts can be deployed to automatically execute trade agreements upon the meeting of certain conditions while eliminating the hassle of paperwork.
With the use of public blockchains, parties to an international collaboration will foster greater levels of trust, given the transparency of operations.
“By embracing fintech for trade finance in the UAE, SMEs can tap into a growing ecosystem that supports innovation and entrepreneurship,” read the report. “The UAE government has been actively promoting fintech initiatives through regulatory frameworks that encourage collaboration between traditional financial institutions and emerging fintech players.”
UAE’s push into blockchain
The UAE has emerged as the leading country for Web3 in the Middle East, backed by a combination of government and private sector initiatives. Abu Dhabi officials have since rolled out regulations for the control of decentralized autonomous organizations (DAOs), with courts in the city turning to blockchain for efficient processes.
Dubai’s robust digital asset regulation sets it apart from the rest of the world, with a clutch of global service providers scrambling to obtain operational licenses in the Emirates. Since 2022, Komainu, GCEX, Bybit, and CoinMENA have snagged approvals from the city’s digital asset watchdog.
Watch: Saeed Mohammed Ali Alhebsi—It’s mandatory from UAE leaders to implement blockchain
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