Page 204 - ITU-T Focus Group Digital Financial Services – Executive Summary

1 Introduction

1.1 Background

The United Arab Emirates, and Dubai in particular, have taken major strides in the digitization of services,
processes and assets, and have emerged as a regional leader. Smart Dubai initiative was born out of the
visionary approach of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime
Minister of the UAE and The Ruler of Dubai to focus the city’s unified effort towards its most valued asset -
its people. The vision of Smart Dubai is to become the happiest city in the world (by embracing technology
as an enabler). The Smart Dubai initiative plays a pivotal role in guiding and enabling the city’s ongoing digital
transformation across all sectors. Since the Smart Dubai initiative was founded in March of 2014, the city has
witnessed exceptional growth in the availability and quality of digital services contributing to more efficient
and improved city experiences for the government, private sector and individuals. Dubai embarked on its
smart and sustainable city transformation through several tracks including legal, governance, infrastructure
and services among others.
During the past two decades, the numerous digital transformation initiatives in the city drove public
acceptance and adoption of ICTs in all aspects of life. In 2017, Dubai, a city of 2.5 million inhabitants and one
of seven Emirates of the UAE, has one of the highest levels of ICT adoption in the region, both by the public
and the government. Dubai has historically pioneered exceptional quality of life and an unparalleled business
environment. Outlined in His Highness’ vision, technology, as the platform for solutions, is simply to play the
role of an enabler, rather than the principal goal. The Smart Dubai initiative fulfills the vision of His Highness
to make Dubai the happiest city on earth. The impact the city can create with the goal to drive happiness is
enormous, and is growing tremendously each year. Numerous implementations ranging from massive
“Internet of Things” (IoT) systems, data analytics, pioneering blockchain, hyperloop projects, innovative 3D
printing initiatives, autonomous vehicles and drone experiments, robotics and artificial intelligence
applications were developed and trialed as part of the initiative.

1.2 Challenge and response
In this context, Smart Dubai launched two major and complementary initiatives called Smart Dubai Platform
and Dubai Data which unite various aspects of Dubai’s smart and sustainable city transformation at the data,
and selective ICT infrastructure and service levels. Smart Dubai Platform forms the new digital backbone of
Dubai in its city-wide digital transformation whereas Dubai Data initiative aims to achieve a seamless,
efficient, impactful and safe data governance and data sharing at the city level contributing to Dubai’s smart
transformation.

Smart Dubai Platform: Prior to Smart Dubai Platform, various entities were working independently to deliver
their smart city initiatives with commonly needed data, IoT and related ICT infrastructure requirements. The
city potentially risked inefficiencies stemming from replication of ICT investments, resources and services.
Hence, Smart Dubai launched the Smart Dubai Platform (SDP) initiative to unify the common collective smart
city needs of public sector entities by identifying various inherent synergies (to be extended to private sector
entities in due course based on demand). SDP is a large scale complex initiative consisting of infrastructure,
data and services which will be delivered in multiple phases. SDP entailed significant capital and operational
expenditures spread over time associated with its implementation and roll-out phases. Additionally, it posed
challenges in terms of sophisticated smart ICT and data management skills, platform development and
provisioning at the city level, as well as platform and related services commercialization.
The financing challenge of the SDP initiative was to formulate a smart mechanism for this city-wide initiative
in a creative and commercially viable manner without necessarily relying purely on traditional public sector
funding. After a careful feasibility analysis and extensive consultations with stakeholders, a Public-Private-
Partnership (PPP) model was adopted for implementation. The partnership also addressed financing, skills,
platform development and commercialization issues jointly through the selection of an appropriate private
sector partner. Hence, SDP was an innovative initiative both in terms of its scope and also in terms of its
financing.

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