The Dubai Land Department (DLD) has partnered with Emirati lender Mashreq Bank to launch a new blockchain based mortgage platform as first reported by The National. As with most land registries around the world, mortgages are registered as a claim against properties. Until now, that often involved visiting Dubai Land Department offices in person and providing paperwork.
The platform, developed by the DLD and known as the ‘e-mortgage system’, will act as a repository for the mortgage records of Mashreq’s clients and in future others. In this way, the DLD can also easily check whether the contracts are regulatory compliant. The new system is part of the bigger vision for the Dubai Real Estate Blockchain.
Furthermore, the mortgage registration platform and client will be linked in such a way that any changes to their mortgage status, such as in a sale or liquidation, will be reflected on the platform.
The DLD’s director general, Sultan Butti bin Mejren, emphasized the efficiency of the system: “The development and launch of the new e-mortgage system come as part of our ongoing efforts to enhance automation applications and systems in our transactions to reduce paper transactions and the number of visits. We expect that applying blockchain technologies will contribute to reducing the number of visits, in line with the ratios set by the Government of Dubai for government entities.”
Under the agreement, the two parties will also foster a closer relationship and promote integration for the benefit of all participants.
Mashreq Bank senior director, Arshad Khan, explains: “This partnership aims to save customers both time and effort by integrating DLD and Mashreq services, ensuring that it is a win-win situation for everyone.”
The partnership also seems to be the initiation of digitization of Dubai’s mortgage practices. Majid Saqer Al Marri, the CEO of the registration and real estate services sector at DLD, interprets the partnership as an “important first step” in the spread of e-mortgages’ benefits.
This is just a continuation of Dubai’s exploration of blockchain technology. Last year, Smart Dubai, in conjunction with IBM, announced the launch of the Dubai Blockchain Platform.
Furthermore, the Smart Dubai Office collaborated with the Dubai Department of Finance to develop a blockchain-based Payment Reconciliation and Settlement system.