Executive Summary
Blockchain technology permits a combined category of select actors to share data. Its importance is gaining momentum as governments and public agencies are beginning to integrate the process for their daily transactions. One of such entities is FAICCPS, an agency in UAE that decided to invest in the creation of a new data management system using the BT.
Therefore, this paper reviewed and discussed the impact of BT on the federal authority for identity, customs, and port security in the UAE. The research was formulated and executed through a case study design, and the study relied on secondary data generated through the document analysis technique. This was followed by analysis guided by comprehension, synthesis, theorising, and decontextualizing of the facts as they were presented in various materials. The findings revealed that FAICCPS managed to enhance accuracy and efficiency and provided timely and transparent delivery of services. Thereby reducing time for service delivery, lowering operating costs, improving work efficiency, enhancing data security, and reducing operating costs. However, FAICCPS still needs to invest heavily in cybersecurity to curb fraud and criminal activities.
Introduction
Background Information
Blockchain is defined as a ledger of decentralized data that is securely shared. The technology enables a collective group of select participants to share data. With Blockchain cloud services, transactional data from multiple sources can be easily collected, integrated, and shared (Hayes, 2022). Further, it is a distributed database that keeps data electronically in digital format and is very important for maintaining safe and decentralized information and transactions in cryptocurrency systems. This technology guarantees the accuracy, trust, and security of data (Hayes, 2022). Unlike a conventional database, Blockchain is structured such that it collects details in groups called blocks, with each having a specific storage capacity. However, the filled block is linked with one another so that they form a chain of records. The primary reason for Blockchain is to allow the capturing and distribution of data without editing them (Hayes, 2022). Thus, it is the foundation of permanent ledgers of transactions that are not changed, deleted, or erased.
Over the years, Blockchain has exploded through the creation of several cryptocurrencies, decentralized finance applications, non-fungible tokens, and smart contracts that allows full transparency, efficiency, and cybersecurity. The importance of Blockchain technology is gaining momentum as governments and public sector organizations are beginning to adopt and integrate the process for their daily transactions. For example, the FAICCPS, operating in the UAE, is using it to enhance its responsibilities.
Federal Authority for Identity and Citizenship (ICP) was established on September 29, 2004, under the name “Emirates Identity Authority.” Its core functions included keeping an electronic database of personal and vital data for all people in the country as well as issuing Emirates ID cards to individuals’ incorporation with other government agencies (About ICP, 2022). Since its creation, ICP has specialized in giving identification and confirmation services to individuals within federal and local governments and all other entities. Further, it is authorized under the law to ask for the necessary information from other state agencies to fulfill its mandate (About ICP, 2022). The Federal Decree-Law No. 3 of 2017 necessitated the change of its name to “Federal Authority for Identity and Citizenship (FAICP).” Additionally, the agency portfolio increased to include functions such as citizenship Affairs, passports, and entry and residence of foreigners in the state (About ICP, 2022). The terms of reference and powers assigned to the Ministry of Interior were equally transferred to FAICP.
In 2021, the UAE’s leader issued a further order to merge the Federal Authority for Identity and Citizenship with the Federal Customs Authority and the General Authority for Ports, Borders, and Free Zones Security. The new entity was then called the “the Federal Authority Identity, Citizenship, Customs and Ports Security (FAICCPS) (Expat Media, 2021). In addition, the new mandate for the agency was spelled as regulating privileges, passports, access, and dwelling of foreigners in the country, upgrading ports, boundaries, and open areas security, and elevating their efficiency and readiness. Consequently, it was given the role of arranging and overseeing customs work in the country in line with global standards.
Further, FAICCPS is expected to formulate policies, strategies, and laws associated with recognition and people’s affairs, passports, entry and residence of immigrants, customs, and dock safety, along with other business for Cabinet concurrence. Along the same line, FAICCPS should establish, develop and upgrade the population registry and personal data system in the country and manage it in line with the best practices (Khaleej Times, 2021). To actualize these tasks, the agency was therefore decided to set up systems, programs, and procedures to enhance the accuracy, security, efficiency, and competent delivery of its responsibilities. Essentially, the resources of FAICCPS end up with a lot of digital data that needs to be effectively managed and fully transparent. Adopting Blockchain technology, thus, was meant to eliminate any possibility of its data being compromised, and it inculcates transparency in its processing procedures. Additionally, FAICCPS recognized that it works incorporation with other organizations, both public and private, to accomplish its mandate. Therefore, it must constantly exchange necessary information through secure channels with other public sector bodies and stakeholders.
FAICCPS needed a technology that could help them keep information in blocks protected by hashing. The idea was to replicate a process that has tight cybersecurity to prevent unauthorized persons from gaining access to the system. In addition, FAICCPS wanted a system that could allow the creation of a “digital profile” of each citizen, with data stored as multiple copies in blocks of the distributed network (Khaleej Times, 2021). Purposely arrange data in blocks that give room for improving data processing speed. This necessitated the selection of Blockchain technology, which simplified the bureaucratic part of administrative work at FAICCPS and ensured effective automation of data sets through distributed databases, eliminating errors.
Problem Statement
FAICCPS, as a newly created multi-agency government organization, needs to handle large amounts of data of strategic value. The administrative work associated with the need for bureaucratic paperwork impedes the efficiency of FAICCPS (About ICP, 2022). Additionally, the increased economic speed of the UAE, combined with the investment and tourism attractiveness of the country, creates the need for secure, precise, efficient, fast, and transparent data management for the country’s national security. However, there were gaps between the anticipated changes related to improving the organization’s operations and efficiency and the real work going on within FAICCPS (About ICP, 2022). This enormous task and responsibility called for the review and adoption of a new pragmatic and efficient data management system by FAICCPS. Consequently, FAICCPS invested in the development of a new data management system using Blockchain technology (BT). Therefore, this paper reviewed and discussed the impact of BT on the federal authority for identity, trade, and dock safety in the United Arab Emirates.
Research Questions
The paper looked into the research questions such as the operational challenges that FAICCPS currently faces, the expected KPIs performance indicators in the agency, and the benefits that the implementation of Blockchain technology created for the organization. Additionally, the paper tried to answer the question of the challenges that FAICCPS might face by adopting and implementing the Blockchain system as a mechanism for improving its operational efficiency.
Objective/Aims of Research
The project aimed to explain in detail the practical framework of the benefits and opportunities of Blockchain technology in the FAICCPS. In addition, it focused on conducting a literature review and identifying the key challenges facing population registration companies. Further, it explored the existing examples of intelligent solutions for public companies to improve their operations and assessed the possibilities of using Blockchain technology in public sectors. Lastly, the study analysed the opportunities and challenges that could become relevant to the FAICCPS after the operational changes.
Expected Outcomes
The paper is expected to come up with the conclusions on the challenges FAICCPS currently faces and reveal the performance level of BT automation at the agency. Further, it demonstrates the benefits that FAICCPS has so far realised as a result of going digital in its service delivery and then highlights the issues that could impede the organisation from improving Blockchain technology efficiency during its implementation. Lastly, the research will, after the findings, make recommendations on how FAICCPS could improve on the grey areas which prevent smooth operations currently and in the future.
Literature Review
The president of UAE ordered the merging of the three government entities: The Federal Authority for Identity and Citizenship, Federal Customs Authority, and General Authority of Ports, Borders, and Free Zones Security. A new agency called the Federal Authority for Identity, Citizenship, Customs, and Ports Security was formed (Expat Media, 2021). FAICCPS is responsible for formulating laws, regulations, standards, and requirements for passports, citizenship, entry affairs, and foreign residency for cabinet approvals. Further, it manages affairs of citizenship, entry into the country, as well as customs and port security. To meet this challenging task, FAICCPS adopted Blockchain technology to enable it to execute its mandate accurately and efficiently (UAE, 2021a). This followed the launching and adoption of BT by the UAE government in its strategy to transform 50% of government transactions into the BT platform (UAE, 2021a). The aim was to make Dubai the first city fully powered by BT by 2020, and it was anchored on efficiency, industry creation, and international leadership standards. The UAE government, through FAICCPS, has been proactive in implementing this approach to actualize its dual goal of improving services and citizen engagement.
FAICCPS Company Analysis
Currently, FAICCPS is responsible for coordinating services such as citizenship, passports issues, entry and residence of foreigners in the UAE, as well as customs and port security. The agency prepares laws, regulations, standards, and necessities in its various categories of responsibilities and sends them for cabinet approval (Expat Media, 2021). It sets up procedures for issuing IDs to all citizens and residents. Further, it promotes and enhances the efficiency of the ports, borders, and free zones security and manages customs work. According to the set standards, the authority develops unified processes related to inspection, control, tariffs, data, and combating smuggling and frauds (Expat Media, 2021). Additionally, it issues, renews, suspends, withdraws, closes ports, and freezes licences for individuals and companies. FAICCPS develops and updates the country’s population register and personal data system (Expat Media, 2021). Internationally, the organisation represents the UAE government in signing treaties and agreements with other countries and global bodies in several relevant fields.
In trying to actualize these activities currently and in the future, FAICCPS launched a digital transformation strategy based on improving its competition in technology and integrated processes and services. Further, to promote innovation, improve the efficiency of digital tasks, and infuse automation culture within the agency. FAICCPS has so far managed to remodel and automate its services 100% (Khaled, 2021). In addition, it witnessed an 80% reduction of customers in service centres by 2021 (Khaled, 2021). Consequently, FAICCPS now has electronic platforms where customers register with digital UAE pass, besides accessing information and performing all transactions on its online network and smart channels. Furthermore, the organisation has an explicit digital charter that supports the culture of automation and institutional digital innovation among the employees to increase their ambitions and develop their competencies. This is meant to retain the best workforce to help actualize the change (Khaled, 2021). To build true digital tradition, FAICCPS is working with partners to create awareness among individuals, firms, and companies in line with the vision of the UAE government.
SWOT Analysis
SWOT analysis is a framework used to investigate the competitive situation of an organisation or a company so as to develop a strategic scheme of operation. This method examines the internal and external factors, as well as current and future potential (Kenton, 2021). It is data-driven and not influenced by existing beliefs but focuses on the real contextual position of the firm. The FAICCO’S strategy draws from the Federal government of UAE’s plan to be the largest technologically advanced country in the Middle East by implementing and utilising state-of-the-art technology to improve its performance. Therefore it sought to analyse its internal environment by looking into its strengths, weaknesses, opportunities, and threats to its service delivery.
Strengths
FAICCPS has support from the federal government of UAE, key stakeholders, and other partner organisations. The agency prides itself on clear prerogative based on federal laws and leadership in favour of making changes to achieve intended results and outcomes. It has excellent communication channels with both the federal and local governments and all stakeholders. Further, FAICCPS has an express mandate to initiate the development of work systems, protocols, and the improvement of both internal and external business relations (UAE, 2021b). Lastly, it boasts of a uniquely valuable and integrated BT system and employees who are ready to learn and serve the customers.
Weaknesses
On this front, FAICCPS is experiencing the inability to reach its target every year. In addition, they suffer due to the limited number of skilled BT engineers and human resources to operate the system, thus impeding its growth and expansion (UAE, 2021b). It has inadequate mechanisms for linking with external entities, thereby preventing automatic data and information updates. So far, it has a good link only established with the federal government of UAE.
Opportunities
Federal government moves towards e-government service provision, UAE’s commitment to and planning for a knowledge-based economy creates conducive room for improvement in Blockchain technology by FAICCPS. The need to provide comprehensive, accurate, transparent, and efficient services to citizens and foreigners as well makes it easier for the organisation to explore and innovate new ideas (UAE, 2021b). Additionally, the gaps in the provision of secure and fraud-free services to individuals and companies necessitate the importance of enhancing service delivery. Senior management backs the initiatives to keep abreast of best practices amid global information sharing and competition.
Threats
FAICCPS is faced with poor linkages of its system with other agencies and partners, and this undermines faster and more effective delivery of services. It lacks enough technical and managerial personnel specialised in Blockchain technology within the UAE and, therefore, cannot function optimally sometimes. There is a lack of proven understating of the customer needs and expectations by the management and its staff, this leads to the delivery of unsatisfactory outcomes (UAE, 2021b). In addition, poor legislative and legal coordination on enacting laws required to regulate the BT operations at the national and local levels leaves room for misunderstandings that negate service delivery. Lastly, the increasingly costly investment needed to implement Blockchain technology fully to digitise FAICCO’S services could slow down the digital transformation of the agency.
PESTLE Analysis
PESTEL analysis is a tool used in situation analysis to examine the external or factors outside the company (macro environment level) that might affect its performance. It identifies the situations that may change in the future and take advantage of the opportunities which could exist or try to mitigate the firm against the threats posed (Jurevicius, 2022). The FAICCPS used the PESTLE tool to identify a series of political, economic, social, technical, legal, and environmental factors that may influence its strategic operations and performance currently and in the future.
Political
FAICCPS must enhance coordination with other government agencies, both national and local, to improve its efficiency and eliminate barriers that could derail service delivery. It must comply with the federal government on the activation and implementation of e-government services by following the laid down policies (Jurevicius, 2022). Further, FAICCPS must study the trends in the market and understand what other competitors on Blockchain technology locally are doing so that they could match up to them or even do better than all.
Economic
There is a need for FAICCPS to have an advanced financial management system to enhance accountability and efficiency for maximum profits. The agency must source funds to build the state-of-the-art BT system that functions at minimal cost but with optimal financial benefits (Jurevicius, 2022). Additionally, FAICCPS should strive to provide BT services that are affordable to the larger segment of the UAE population, taking into account their income levels, inflation, exchange rates, and disposable income levels.
Social
The system must be flexible to the extent that it should accommodate the expected surge in the number of locals and foreigners that it will serve in the future. Further, BT services provided by FAICCPS must be fast, accurate, and effective to meet the demands and preferences of the clients (Jurevicius, 2022). The system put in place must meet international standards in terms of language use and take into account the cultural diversity of individuals within UAE and foreigners as well.
Technical
FAICCPS must build a BT infrastructure that is safe, secure, and sophisticated but with elaborate instructions on how to rectify errors. The agency must recruit and train enough staff to handle the technical issues so that it will achieve optimal performance most of the time each day. In addition, FAICCPS must invest in research and development so as to be up to date with trends and new innovative ideas in BT digital domain (Jurevicius, 2022). The firm’s management and general staff should be flexible enough to embrace all the new changes in technology they have adopted.
Legal
FAICCPS should formulate legislation on how to cooperate with other national agencies, partners, and private entities implementing the BT system. The agency must have a reliable legal mechanism to resolve challenges such as fraud and contractual obligations (Jurevicius, 2022). Further, there is the need for a legal framework on key responsibilities of all key stakeholders who are involved with the provision of services. It must put in place policies on data security and protection and the rights of individuals, firms, or companies to the confidentiality of their information.
Environmental
The organisation must look into the impact it creates on its immediate surroundings and neighbourhood. It should strive to create the least pollution and destruction to the atmosphere in which it operates. FAICCPS must have proper waste management and disposal mechanisms that keep its premises clean and habitable (Jurevicius, 2022). Lastly, it would be excellent if the organisation goes completely paperless in its operations and service delivery to have zero impact on the environment.
Analysis of Operation Functions
There have been a number of claims in the recent past that Blockchain has the potential to revolutionise many sections of international trade, including finances, customs procedures, and intellectual property. The argument is based on the fact that BT is transparent, decentralised, and immutable in nature (Ganne, 2018). Therefore, it could elicit the interest of private sector players and governments to explore the potential of this technology to enhance the efficiency of trade processes. International trade involves movement and multiple actors and continues to rely on paperwork.
For example, in 2014, a shipping company called Maersk followed a refrigerated container carrying roses and avocados from Kenya to the Netherlands to document the procedures involved. It revealed that 30 organisations were involved with over 100 people throughout the journey who made more than 200 interactions, and the shipment took 34 days to complete (Park, 2018). It showed that several documents must be filled out, and the process took many days to complete. Further, these paper-intensive proceedings increased the administrative costs and were found to be prone to errors, losses, and fraud. This complexity has necessitated many companies and governments to experiment with how BT can be used to reduce paperwork and improve transactions.
Blockchain is excellent at administering import and export licences more precisely and effectively. Normally, these permits are delivered to cover a specific period of time and for a set period of time. When they are stored on the BT, it saves the importer or the exporter the burden of having to look for a safe place to keep them, so they do not get lost. In addition, Blockchain allows the customs authorities to easily check the authenticity and validity of the documents and, in the process, eliminate the possibility of admitting individuals with fake certifications (Tapscott & Tapscott, 2018). Likewise, the use of a smart contract within BT creates room for parties to instantly render all imports/exports invalid once the validity period is over, thus, assisting in fighting deceit. Such a scenario was once witnessed in the Philippines in 2016 when the Agricultural division terminated and recalled all imports of meat products to solve the fraud whereby old permits were being recycled to smuggle commodities.
Key Challenges Facing Population Registration Companies
BT is capable of facilitating the verification of identities of ventures and people. It can improve the efficiency of border regulations between companies and governments (Ganne, 2018). Due to this enormous potential, many organisations such as UN/CEFACT, and the World Customs Organization (WCO) are investigating how Blockchain technology could be integrated with the existing customs systems and certification processes. They are partnering with different governments and IT firms on this venture. However, there is a real challenge in making cross-border government-to-government processes effective. For instance, there is a risk such as sharing of information related to authorising economic operators (Ganne, 2018). Whereas the BT can facilitate the various dimensions of border government to government interactions involved with customs clearances, there are regulatory legislation issues existing in different countries which Blockchain could do little to solve.
There is the technical interoperability challenge that comes with the digitization of documents. While using the traditional paperwork way, the transactions are usually presented in copies to the right and competent agencies for verifications. However, digital papers require the creation of “ad hoc e-bridges” between authorities in different countries, and this process is complex and difficult to implement (Ganne, 2018). It is not clear whether BT can facilitate such technicalities as much is dependent on real technical setups that exist at the national levels of two bordering countries. The best way to solve this is when both governments and their agencies would be part of the same Blockchain so that no coordination would suffice.
Consequently, data would be moved directly from one authority to the other based on the BT platform rules only. This scenario is at its initial stages and is being tested by several players in the BT field. An example is the Singapore Customs Declaration system that was rolled out in cooperation with IBM. These two entities developed a Blockchain customs portal that facilitated the agency to send customs declarations from New York to Singapore (Ganne, 2018). The technology has a ledger permitting members of the network to access all customs data in real-time from one single place.
Additionally, going paperless needs more than the technology and the interfaces involved because there must be a regulatory framework for the electronic authentication of e-signatures, e-documents, and e-transactions. The process should be able to permit the authority of other government entities (both national and foreign) to issue required documentation and allow the sharing of specific types of information (Ganne, 2018). This is not the case at the international or cross-border levels, as only a few countries have legal provisions for such recognition. Likewise, in a number of countries, national laws must be amended to allow the access and sharing of data with other administrations even within their borders. There is the difficulty of language simplification and standardisation which impedes several companies from implementing BT (Ganne, 2018). It prevents efficient working of Blockchain due to variation in the formats that exist in different countries because currently, there is no standardised semantics.
The case of Blockchain Technology Globally
Companies are increasingly using artificial intelligence (AI) in business, and there are signs that it will accelerate further in the near future. The advances in AI tools have created room for firms to access these intelligent solutions (Pratt, 20221). They use AI mostly for data security, process automation, and customer care. There is evidence that AI adoption helps lower the cost, increase efficiency, boost productivity, and provide avenues for new products and services. For example, chatbots use both machine learning algorithms and natural language processing (NLP) to understand the customer’s request and respond correctly (Pratt, 2021). Further, these solutions work faster than humans and at a lower cost. AI solutions have functions that employ customer data and predictive analytics to suggest what they want.
Organisations, including public companies, use intelligent solutions to detect fraud that is postulated to cause about 5% of revenue losses every year. This algorithmic security is applicable to many situations, including cybersecurity and tax evasion (Wellers et al., 2017). For instance, Firms are nowadays building models based on historical transactions and social network data using machine learning algorithms to spot anomalies, exceptions, and outliers in operations. The process enables the ventures to prevent fraudulent business in real-time (Wellers et al., 2017). It further helps firms to discover suspicious patterns of payments and transfers between networks of individuals with overlap.
The process automation (PA) of digital and physical tasks at companies for back-office administrative and financial services is done effectively by robotic technologies. Robots act as humans inputting and consuming information from many systems (Davenport & Ronanki, 2018). The activities it could perform include transferring data from email and call centre into systems of records and reaching into several structures to update documents and handle client communications. Further, process automation helps with reconciling failures to charge services by generating data from multiple files (Davenport & Ronanki, 2018). Additionally, it assists in reading contractual and legal documents to create provisions using natural language processing. PA cognitive technology is cheap, easier to use, has a higher return on investment for companies, and can work across many back-end systems.
Further, an increasing number of companies are turning to Blockchain to further improve cross-border payments. The need for transparency, accountability, and effectiveness is prompting governments and their agencies globally to leverage technology to improve services, reduce costs, and better management and procurement processes (Ganne, 2018). This drive has escalated following the successful implementation of e-government procurement (e-GP) in Canada in 1991. Currently, electronic systems have been designed, developed, and launched across the world. For example, in October 2017, MasterCard introduced its Blockchain network to address the challenges of speed, transparency, and cost in cross-border payments (MasterCard, 2017). This BT is accessible via an API, making it easier for users to get linked without creating their own distributed ledger server nodes.
Benefits and Opportunities of Blockchain Technology in FAICCPS
There is the opportunity that FAICCPS could benefit from Blockchain technology because it improves the transparency of its operations and services, thereby enhancing trust among the public and foreigners. BT will help the agency to achieve this through data monitoring and by creating new mechanisms for tracking the processes (Ganne, 2018). Consequently, providing the mechanisms for tracking all aspects of their transactions. Further, BT will enable FAICCPS to have a highly secure system that is capable of proving the authenticity of identities of all individuals and corporations they are handling and help curb fraud.
Blockchain could assist FAICCPS in reducing the cost of doing business, such as verification (the ability to determine the attributes of a transaction cheaply) and networking expenses. There is evidence that BT could have a significant effect on the overall tariffs (Ganne, 2018). Additionally, BT enables the information that is added in to be automatically screened on the basis explained in a smart card contract, for example, processing applications and records for customs. This technology makes it easy for data to be tracked and audited; likewise, it facilitates the validation of individuals’ identities and financial documents of companies (Ganne, 2018). The decentralisation traits of BT allow many entities to coordinate undertakings in real-time in an open, accountable, and secure manner, hence, improving the efficiency of FAICCO’S services (UAE, 2021). In addition, a Blockchain-based digitised agency will be able to protect its data, streamline operations, and eliminate waste and misuse of resources.
Challenges Experienced by FAICCPS when using Blockchain Technology
The challenges faced by FAICCO’S cut across all other government agencies and organisations in the UAE. They are essentially related to the strategic, operational, and regulatory aspects of implementation. There was a survey conducted by the Centre for the Fourth Industrial Revolution in the United Arab Emirates (Muhairi et al., 2020). The study recruited 100 from over 60 governmental and non-governmental entities across the country. The objective of the research was to explore the implementation of Blockchain technology and to investigate the evolution of the ecosphere and the appropriate issues and key attainment factors applicable. One of the findings was that it was difficult to bring stakeholders to the table, as was affirmed by 62% of the respondents (Muhairi et al., 2020). Further, there were issues to do with the alignment of interests and communication between parties. Lack of proper knowledge about BT by employees of various entities was confirmed by 52% of the participants, and this was more pronounced among employees in the public sector (Muhairi et al., 2020). On the other hand, those working in private firms were concerned about the problems around regulatory uncertainties.
Other challenges were witnessed in authenticating individual and company’s identity, safeguarding the integrity of data entering the Blockchain, and managing compliance and security standards. Results revealed further that organisations were still learning to design project management in a federated and democratised manner to be in line with the nature of Blockchain architecture and administration. Therefore, regulating the engagement among companies on a co-owned platform that needs funding, hosting, operating, and maintaining was proving difficult (Muhairi et al., 2020). Due to differences in methodologies used by separate entities, unconventional management requirements were not easy to achieve. Lastly, there were differences in timelines and priorities between organisations.
Innovative Approach and Transparency Framework
Blockchain’s influence within the public sector has the potential to create security and efficiency and speed up services and processes. Its benefits are very much applicable in all organisations and government agencies, as evident by the growing number of government leaders who are exploring how they could tap it into running their affairs. In the UAE, the state at the national and local levels is examining cases of its application in business registration, trade, and central bank operations (White et al., 2022). BT has the ability to settle and verify transactions very fast in minutes and in real-time with specific codes that meet conditions and act accordingly. This technology eliminates inefficiencies and creates clarity that allows for automated execution of tasks after meeting set criteria between parties to the ledger.
Present Knowledge Gaps
BT is still an emerging technology, and the skills required to design, develop and use it are scarce. A survey carried out by the Blockchain Council in 2019 revealed that demand of more than 500% for BT engineers (Brown, 2021). This has created a challenge for the companies and organisations, including FAICCPS, that are currently adopting, integrating, and implementing the system (Brown, 2021). Trust deficit among firms using BT is another gap that impedes its implementation. This problem cuts in two ways; firstly, organisations have issues with the security of the technology itself and so fail to trust those other entities they are dealing with.
It is expected that each BT should be secure, private, and verifiable. However, this is not the case because there is no central authority to validate the transactions since the network is decentralised. Further, with many firms and companies moving to BT, they do so by developing their own structures with different characteristics (Brown, 2021). They create variations in governance regulations, variations in BT versions, and consensus models. Thus, these separate BTs are not able to work together, and currently, there is no standardised mechanism that can allow dissimilar networks to communicate with each other. The lack of interoperability makes it hard to access and share information. Additionally, BT ecosystems need board adoption for them to function properly. Currently, only about 29% of companies are piloting it or have fully developed BT (Brown, 2021). Lack of large-scale usage limits the effectiveness of the technology.
Research Methods
This research paper was formulated and executed using qualitative design. This plan involved collecting and analysing data to understand the concepts, opinions, and experiences, gather in-depth insights, and generate new ideas (Busetto et al., 2020). A case study was therefore selected as the best layout to generate data for analysis, gather information, and draw conclusions on the impact of Blockchain technology on the delivery of FAICCO’S services. This strategy enables the researchers to carry out an in-depth exploration of a phenomenon within a specified context (Rashid et al., 2019). A case study analyses issues within the boundaries of a particular environment, situation, or organisation.
It allows for the integration of both qualitative and quantitative aspects of generating data. Further, the techniques capture complexities of real-life occurrences giving room for a detailed analysis of the incident or the experience. The design brings out the understanding of a complex idea through in-depth contextual analysis of the parameters of the study. Its flexibility gives space for applying a variety of methodologies and necessitates the use of many sources to investigate a research problem (Rashid et al., 2019). However, a small number of cases could offer little ground to reliably generalise the findings to a wider population. Additionally, this design does not allow the researcher to examine the cause and relationships of the study variables and may not represent the larger problem under investigation.
Sampling Strategy
This study used secondary data to come up with the findings and conclusion on the research topic. Second-hand facts are information that is already available, that was previously collected by primary sources, analysed, and has been documented, and anyone can access them (Harappa, 2022). In other words, secondary data is generated by a researcher as a third party from books, journals, articles, internet sites, and reports. What is required is just gathering a variety of information from different authorities with themes similar to the study topic or research question, then collating and summarising them into insightful results. In this case, the researcher does not require participants to answer specific questions (Harappa, 2022). However, they only need a list of topics from various authors to extract the right data for their analysis, categorization into themes, triangulation, and make conclusions as appropriately as possible. Further, the strategy involved collecting information from both qualitative and quantitative sources.
Data Collection Strategy
The data was collected using a document study or analysis method. This is a systematic procedure to analyse documentary evidence and answer specific research questions. It is used to explore, group, and analyse physical sources, most frequently written reports, in the social, public, private, or digital domain. This technique allows the researcher to gather information on the subject to which they have limited physical access (Morgan, 2022). Further, it needs a reiterated review, assessment, and explanation of the data so as to gain the context and empirical mastery of the variables being assessed. In addition, a document study creates room for the researcher to either conduct a stand-alone investigation or carry out a mixed methods research (Morgan, 2022). Thus, allowing triangulation of results and findings generated from a variety of data sources such as interviews, focus group discussions, observations, and surveys. Consequently, documents are corroborated, refuted, elucidated, and expanded and thereby helping the researcher to guard against biases.
In this paper, the researcher relied on public documents from the federal government of the United Arab Emirates. Secondly, the official records of the activities of the FAICCO’S agency, such as handbooks, reports, strategic plans, digital policy documents, and e-service documents (Indeed Editorial Team, 2021). The information contained in these materials was key in putting the research context into its perspective. Further, they assisted in proposing the situations that needed additional observation and gave extra insights that were valuable to the study topic. In addition, the sources made it easy to track and validate the evidence found in other research elsewhere.
Data Analysis Framework
The process involved listing and deciding on the types of documents that were used, as explained in the immediate last paragraph. All the sources were extracted either from the UAE government website, online newspapers, or magazine reports. Secondly, the data was organised into units of meaning (such as words, phrases, or images) and a set of categories (characteristics of the content) (Indeed Editorial Team, 2021). This was followed by coding, which establishes the themes emerging from each set of information. Thirdly, the researcher created the authenticity of the sources by looking into their credibility, dependability, confirmability, and transferability (Indeed Editorial Team, 2021). Fourthly, checking was done to confirm the biases that could exist in the data in terms of opinions, perceptions, and wordings.
The researcher then asked questions to assist in examining the background of the materials and how best they could be used to answer the study topic. For example, the following quiz was used in the analysis framework, who created the document, the material is about what, the time when it was written, the origin of the document, and its importance. Finally, the records were evaluated to identify the patterns in the data, and key information was extracted (Indeed Editorial Team, 2021). For each source used, a determination on how it responded to the research topic was made. Thereafter, the results were interpreted as findings for reporting, making conclusions, and recommendations for the study.
Research Limitations
This study and the final paper purely relied on qualitative case study design, and data was generated using document analysis techniques. Therefore, it had limitations in the sense that the researcher could not verify the primary data, which formed the basis of the findings in the documents used. Secondly, this method does not allow for examination of the causal relationships of the variables at hand, and so it is difficult to formulate a hypothesis of the study (Christiansen, 2021). Additionally, qualitative research is not statistically representative; thus, its outcome cannot be generalised outside the organisation, place, or the environment in which it was conducted.
Data Analysis
Much of the data analysis procedure is captured in the framework sub-section. However, there was a particular focus on the comprehensive analysis steps due to the fact that multiple sources were used to extract the evidence that tried to respond to the topic. This process was guided by comprehension, synthesis, theorising, and decontextualizing of the facts as they were presented in various materials (Morgan, 2022). Thus, each stage of the analysis was examined by looking at the examples that were revealed in every material used.
Results
Key Changes Observed
There is an integrated e-service called Basher that enables investors to establish their ventures fast through an online platform. Trade licences and establishment card numbers from the Federal Authority for Identity and Citizenship are among the bundles of services (TDRA, 2021). Further, the system offers membership numbers from the Ministry of Human Resources and Emiratisation, a quota for three work permits, and so far, it has renewed commercial licences for more than 1,200 commercial activities. There is another platform called Usrati (My family), which is a government service that was developed based on the outputs of 7 interactive workshops (TDRA, 2021). It was designed with community participation in mind and is being implemented through more than 40 interactions between agencies and 32 work teams (TDRA, 2021). This facility is currently four stages of family development such as marriages, pregnancy, birth, and child progress. Additionally, an employment bundle called Tawtheef enables firms to complete all activities related to hiring and employment in one visit. Through this, companies get a quote for the new employees, work permits, and labour contracts for workers.
The introduction of BT has so far enabled the UAE, through its agencies, to provide more than 6000 federal and digital services. The activities are broken down into 2126 online transactions, 180 informational activities, 110 commercial tasks, 134 social solutions, and 85 seizures (189 of them being priority utilities) (TDRA, 2021). Further, as a result of the operationalization of BT, FAICCPS has witnessed an increase in eServices in the following categories in the year 2020. There were 5073 243 entry permits issued, 1732403 residency certificates were renewed, 1737885 traffic fines were made, and another 844174 contract/mission work licences were renewed (TDRA, 2021). In addition, 681779 new work contracts were given to individuals and firms, 374197 Emirates IDs were renewed, and 77175 new IDs were processed (TDRA, 2021). All these statistics point to a remarkable improvement in the authority’s performance due to BT implementation.
BT has boosted the number of customers who are served by FAICCPS per day. For example, on the first working day, it implemented a new system, and the authority received 5822 clients through various departments and customer happiness centres (Gulf Today, 2022). Those who checked in to the intermediaries constituted 15.1% of the total services (Gulf Today, 2022). Further, FAICCPS completed 32549 transactions per day. A record 84.9% of the applications were submitted electronically through its new online smart services portal, giving another indication that BT improved its operations (Gulf Today, 2022). This shift in performance means technology was proving worth the investment.
The integration of Blockchain technology in the operations of FAICCO’S has enabled the agency to tighten security and curb the fraud that existed before its implementation. For example, on March 1, 2022, the authority foiled the smuggling of banned dairy goods worth AED 25, 239,000 through its port at Fujairah (Lucas, 2022). Further, its General Administration of Customs officials arrested individuals both of Arab and Asian origins who made attempts to bribe the staff on duty with AED 280,000 (Lucas, 2022). The use of advanced technology inspection devices played a key role.
FAICCPS, with the help of the UAE federal ministry of foreign affairs, replaced visa stickers on the passports of visitors with electronic Emirates ID cards to prove their residence status. This is done through apps in a new unified form which includes issuance and renewal; all merged in a single application (Godinho, 2022). This step has helped FAICCPS to greatly reduce the link with the process of issuing and renewing permits for immigrants. It has assisted the agency in enhancing its flexibility for individuals who use the identity card as an alternative during their periods of transition (Godinho, 2022). The new process has made it possible to get the electronic copy of the ID card with the new generation featuring all the details previously found in residence stickers given to visitors. In addition, it has all their information, including personal and professional data and issuing entities, among other readable facts.
A combination of superior legislation and innovation in BT has set the UAE federal government and its public agencies to make the country a global digital hub. Through its well-developed and comprehensive regulatory framework, it has several features that position it as an excellent global centre for the Blockchain technology industry (Buehler, 2022). It has a comparative advantage in terms of existing business networks, and so far, it is leading in connectivity in the Middle East, North Africa, and India. The UAE federal government, through FAICCPS, so far has managed to net Dh 11 million in transactions and document processing through the BT system (Buehler, 2022). Consequently, the country has successfully proved to be a leader in BT as a foundational mechanism for improving public operations.
Key Trends in operational changes
The successful implementation of BT in their operations has increased the appetite for FAICCPS in cooperation with the UAE federal government to strive to be the leader in the services sector and position it as the best in the world in rendering public services (UAE, 2021c). Currently, the agency is focused on implementing a strategy that aims to render its responsibilities to customers efficiently. FAICCPS is seizing the opportunity and is committed to achieving global leadership in the provision of eServices through the BT system. It expects this trend to be actualized and be the benchmark for advanced and effective digital solutions that are accessible to all from any part of the world, at least 24 hours a day by 2023 (UAE, 2021c). The trend in its performance will be guided by the need to put people and their needs first, being proactive in performance, creating and rendering unified and diverse services, and carrying out tasks on time or in advance and with more flexibility.
Further, FAICCPS intends to integrate all operations and enhance data security and confidentiality between all entities and parties whom they serve. Consequently, it will centre its activities on the client’s voice transparency when measuring and evaluating its performance towards delivery to the customers. It ensures precise records of data and creates a data-sharing platform with other government agencies. Therefore, FAICCPS intends to deliver 90% of its services through the BT system, design 100% proactive online services, and create 100% service partnerships with all sectors of the country and international organisations (UAE, 20221c). Additionally, the trend is to have 100% eServices that are accessible from anywhere around the world all the time (UAE, 20221). The end goal is to maintain the leading role in Blockchain technology across the globe.
Connection to FAICCO’S problems and operational efficiency
The problems faced by FAICCPS before the implementation of BT were related to the strategic, operational, and regulatory aspects of service provision. The latter is part of the legislation and laws required to enhance the security of data and client confidentiality and to protect the agency’s activities from fraud. Therefore, regulation would much be solved by FAICCPS in conjunction with the federal government of UAE and other organisations through the formulation of relevant policies. However, strategic and operational aspects of FAICCO’S performance were directly solved by the BT mechanism, and the impact was realised in terms of efficiency of the delivery of tasks. Currently, FAICCPS is almost achieving full BT potential in all aspects of cross-border transactions. The firm has digitised all its services and operations, including finances, customs, logistics, and aligning language semantics in recognition of the diversity of its users (Muhairi et al., 2020). Additionally, the implementation of BT has enabled FAICCPS to increase its transparency, thereby reducing operational costs such as verification, networking, coordination, and exchange rates significantly.
To uproot the challenges, FAICCPS has, over time, identified the right Blockchain technological application and created awareness among key stakeholders. In addition, it has sensitised and educated its staff on the BT system and put the correct structures in place that catalysed the effectiveness of its services (Muhairi et al., 2020). Further, the organisation has embraced emerging technologies through innovation and taking the initiative to actualize the Dubai and Emirates BT strategies as outlined by the federal government of UAE. This has created a conducive atmosphere for FAICCPS to collaborate with other public and private entities to make the technology work seamlessly (Muhairi et al., 2020). Their approach has scaled up the BT implementation in less than three years and increased its service competencies. FAICCPS has successfully used BT for transparent, end-to-end transactions, thereby eliminating delays in definitively identifying shippers moving through customs and improving inspection target compliance via greater data accessibility (Buehler, 2022). Further, by using distributed and secure BT, it has improved security, record keeping, inspection rates, and visibility of inbound international shipments.
Discussion
Blockchain technology is an important aspect of technology that has helped FAICCPS to improve its service delivery, efficiency, data security, and timely operations. Through BT, the agency has, in less than three years, been able to provide advanced digital services that are accessible to all individuals and corporates from all parts of the world at any given time of day (White et al., 2022). This trend has been refocused to be the driver of FAICCPS in all its operations and will inform how it collaborates with other sectors of the economy, both public and private. BT has necessitated FAICCPS to deliver one-stop-shop integrated eServices as ‘bundles’ that give the customers excellent experiences without the need to physically visit offices (White et al., 2022). The features give the users the opportunity to upload their documents, save their requests and submit them later, and get electronically signed documents.
The technology allows FAICCO’S clients, such as businessmen, researchers, and individual customers, to get instant, latest, accurate and comprehensive information about economic licences and data, statistics, and reports. The benefits realised so far have convinced FAICCPS and the entire UAE federal government to stamp its authority as the world leader in Blockchain technology and its applications. Currently, across the globe, from almost three years back, many agencies in several countries, including Canada, the UK, Brazil, China, and India, are intensively running pilot studies and trials on BT systems. The tests are based on architecture’s broad utility as a foundation for government service delivery, procurement, and development of individual BT-based applications (Ganne, 2018). However, each country is striving to create BT apps that are unique to its own internal operations and circumstances within its borders.
In Estonia, the government is piloting BT solutions for voting, identity management, and healthcare (Ganne, 2018). On the other hand, in the United States, the state of Delaware is testing the Blockchain corporate registry system. Further, US federal agencies such as the General Services Administration, the Department of Homeland Security, and the Health and Human Services Department—have announced BT programs (Ganne, 2018). Additionally, New York, Illinois, and Texas are among the states that are trying Blockchain applications to determine their potential to improve service efficiency.
BT’s proliferation of experiments across the world shows that governments have realised its benefits and impact in the long run. FAICCPS, just like other agencies in the UAE and the rest of the world, must therefore invest in long-term strategic innovations that are needed to maintain BT architecture for effective outcomes. Agency heads, directors, and managers will be required to work closely with BT-based solutions to scale up its adoption and adaptation (Ganne, 2018). Meanwhile, governments, agencies, and private entities must strive to bridge the knowledge gap in understanding BT matters, how it works, and why it is relevant to their operations.
Assessment of Research Results
It is clear that Blockchain technology is key and fundamental to the FAICCO’S strategy of improving its operations and service delivery. BT has enabled the agency to transform its work by providing precise, efficient, timely, advanced, and secure customer data (About ICP, 2021). This could not be further from the as FAICCPS was awarded “the Platinum Award for the best smart application in the electronic and smart services category in the region for the year 2021.” The recognition was organised by the Global Excellence Award, based in the United States of America (About ICP, 2021). The honours were given to FAICCPS because it demonstrated its innovative traits in BT, artificial intelligence, ease of use of its system through interactive screens, simple design, and various security protection standards. Further, the reward acknowledged that FAICCO’S eServices were easy to access and available to all people and corporate bodies around the world (About ICP, 2021). This was a clear testimony that FAICCO’S BT implementation was a success and has had a big impact not only with the UAE but on the global stage as well.
Key Conclusions and Implications
FAICCPS has an integrated e-service called Basher that enables investors to establish their ventures within 15 minutes. Trade licences and establishment card numbers are among the bundles of services. The introduction and implementation of BT have accelerated accurate, efficient, secure, and timely operations at the agency. This has, over the last three years, increased the number of customers the organisation has been managing to serve per day. Further, through the integration of Blockchain technology in its activities, FAICCPS has been to tighten security and curb the fraud that existed before its implementation.
BT enabled FAICCPS to replace visa stickers on the passports of visitors with electronic Emirates ID cards. This, in turn, helped the firm to reduce the link with the process of issuing and renewing permits for immigrants. Likewise, it has assisted the agency in enhancing its flexibility for individuals who use the identity card as an alternative during their periods of transition. The well-developed and comprehensive regulatory framework, with several features, positions FAICCPS as an excellent global centre for the Blockchain technology industry. Essentially giving it a comparative advantage in terms of existing business networks, and so far, it is among the leading agencies in BT connectivity in the Middle East, North Africa, and India.
The successful implementation has raised FAICPS’s interest in implementing a strategy that aims to render their responsibilities to customers efficiently. It is seizing the opportunity and committed to achieving global leadership in the provision of eServices. Additionally, FAICCPS is focused on continuing this trend and making it the benchmark for advanced and effective digital solutions that are accessible to all from any part of the world, at least 24 hours a day by 2023. Further, the implication of all these advances and developments is that FAICCPS has reduced time for service delivery, lowered operation costs, improved work efficiency, enhanced data security, and reduced operating costs. Lastly, the agency managed to go fully paperless, thereby aiding in environmental conservation. However, this process has, in the long run, rendered a good number of its previous staff jobless, thus, losing their sources of livelihood.
Research Limitations and Their Effects
This paper purely relied on a qualitative case study design, and data was generated using document analysis techniques. Therefore, it is limited in the sense that the researcher could not verify the primary data which formed the basis of the findings in the documents used. The effect of this is that there are chances the evidence presented was fake or false and in which case, this study could be presenting non-accurate information. Secondly, this method does not allow for examination of the causal relationships of the variables at hand, and so it is difficult to formulate a hypothesis of the study. Consequently, the findings in this research are not statistically verifiable and are merely descriptions of opinions as presented by entities in their reports. Additionally, most of the information in the paper is qualitative, lacks statistical representation, and the results cannot be generalised.
Recommendations
Tangible evidence shows that BT increased benefits for FAICCPS; however, the agency still needs to gauge and evaluate what applications can work for it better before scaling up the investment. Due to massive cybersecurity issues across the globe, the agency should in the future enhance its system security to avoid the risk of losing its data and clients’ confidentiality to frauds and criminal activities. Lastly, FAICCPS must strive to implement BT in an optimal manner that does not deprive it of the human element required to ensure progressive engagements in the applications.
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