The Dubai Land Department (DLD) has reportedly partnered with UAE lender Mashreq Bank to introduce a new electronic mortgage system powered by blockchain technology, The National reported Tuesday. The move by Dubai’s real estate department is designed to bolster home loan services and improve speed and efficiency.
The effort also furthers the emirate’s goal of digitalizing services, as DLD director general Sultan Butti Bin Mejrin explained:
“The development and launch of the new e-mortgage system comes as part of our ongoing efforts to enhance automation applications and systems in our transactions to reduce paper transactions and the number of visits.”
The license agreement between the DLD and Mashreq Bank will link mortgage holders to the new blockchain-based registration system once a real estate sale is made. Mortgage records will be deposited on the platform, ensuring accurate records and proper registration. The platform has also been designed to enable those records to be updated as needed, to record things like payment defaults and liquidations.
The new system is just one part of Dubai’s broader effort to achieve the goals outlined in the Dubai 10x initiative – an ambitious plan to push Dubai’s government services “10 years ahead of the rest of the world in all sectors, including real estate.”
DLD chief executive of registration and real estate Majid Saqer Al Marri confirmed that the department will follow up on its partnership with Mashreq by pursuing relationships with other banks, to “spread its benefits to the largest number of investors.”