News
Dubai Customs introduces blockchain platform to streamline global trade and supply chains
Dubai Customs has launched a new blockchain platform to reduce supply chain friction and improve data transparency. The move is part of Dubai’s broader strategy to establish itself as a leading smart city and global trade hub, according to a July 8 statement.
Dubai Customs launches blockchain platform to improve trade efficiency and strengthen smart city vision
Dubai Customs says the blockchain solution should simplify the sharing of tamper-proof data, reduce the amount of paperwork for local supply chains and save time and effort.
Dubai Customs has announced the introduction of a new blockchain platform designed to ease supply chain friction both within and outside its borders.
In a statement on July 8, the Dubai Media Office announced (via Coin’s Telegraph) that the blockchain solution was implemented as part of a more comprehensive strategy to cement Dubai’s status as a world-class “smart” city.
“This innovation reflects our vision of making Dubai a global hub for trade and logistics,” said Ahmed bin Sulayem, Chairman of the Ports, Customs, and Free Zone Corporation.
“We believe that the adoption of modern technologies such as blockchain will significantly contribute to improving the business environment and strengthening Dubai’s position as a major hub for global trade.”
Bin Sulayem noted that the blockchain solution is designed to simplify numerous procedures, reducing time and effort in accelerating trade transactions and customs clearance.
Dubai Blockchain Platform to Improve Supply Chain Transparency and Reduce Documentation Complexity
It will also improve supply chain transparency by simplifying the cumbersome documentation typically associated with these processes and enabling tamper-proof data sharing.
“The aim is to make the business environment in Dubai more fluid, streamlined and transparent,” said Dr Abdullah Busnad, Director General of Dubai Customs.
For a long time, blockchains have been promoted as a solution to track the movement of items in supply chains in real time and prevent fraud and counterfeiting.
However, in 2022, academics argued that widespread adoption still faces hurdles. In November 2022, IBM discontinued a highly anticipated blockchain supply chain platform.
IBM and its partner, Danish logistics company Maersk, cited a lack of “global industry collaboration” as a significant factor in their decision to discontinue TradesLens.
Nowadays, there are a myriad of additional platforms and blockchains.
VeChain, a smart contract-compatible blockchain used for supply chain monitoring, has been involved in the industry since its inception in 2016. Since its inception in 2019, Chainlink has been implemented for supply chain automation. Global Shipping Business Network (GSBN), based in Hong Kong, has also emerged as a major player in the blockchain supply chain industry.
VeChain, a smart contract-compatible blockchain used for supply chain monitoring, has been involved in the industry since its inception in 2016. Since its inception in 2019, Chainlink has been implemented for supply chain automation. Hong Kong-based Global Shipping Business Network (GSBN) has also emerged as a significant participant in the blockchain supply chain industry.
In January 2020, Dubai Customers also implemented a blockchain-based platform to facilitate cross-border e-commerce.
Photo: Microsoft-Bing