The Dubai Land Department (DLD) and UAE lender Mashreq bank have penned down a deal to develop a blockchain-based electronic mortgage system. The development aims to not only speed up, but also strengthen the home loan registration process and cut down paper work as Emirates bids to virtualize its services and attract more real estate investments.
“Applying the e-mortgage system requires synergy with leading UAE banks … to spread its benefits to the largest number of investors,”
said Majid Saqer Al Marri, chief executive of registration and real estate services at DLD, adding that DLD will continue to seek the best partners to ensure the comfort and happiness of its customers as well as develop the system and support it with the latest technologies.
“This system will ensure customers a unique journey and experience, reducing the number of steps and visits by helping them complete all requirements in one place,” he said.
Dubai’s Latest Blockchain Adoption Move
The e-mortgage system happens to be the latest initiative by Dubai government’s real estate department to adopt blockchain technology in its administrative processes. Apparently DLD launched a blockchain-based Real Estate Self Transaction, or “Rest”, system, intended to enable “the complete digital management of real estate transactions, eliminating paper documents and reducing brokerage procedures” last year.
According to the signed agreement, Mashreq mortgage holders will be connected with DLD’s new electronic mortgage registration system following a property sale so as to ensure all mortgages are accurately registered and recorded. Also, the system will allow modification of mortgage details as well as liquidations and payment defaults.
“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 visit,” said Sultan Butti Bin Mejren, DLD Director General.
About Mashreq Bank
Mashreq bank is a Dubai-based, privately owned bank that happens to be the oldest bank in the United Arab Emirates (UAE). The bank was founded in 1967 and is the first EUA bank to install ATM cash dispensers, issue debit and credit cards and the first to introduce consumer loans.