Dubai Customs launched a blockchain platform to help overcome the efficiency and transparency of transactions within Dubai and across borders. This happened with the joint efforts of the government entities and the logistics industries to make Dubai a premier global trade hub.
In a social media statement released by Dubai Media on July 8, they stated to make Dubai a smart city on the instruction of the Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum.
Chairman of the Ports, Customs, and Free Zone Corporation of Dubai, Ahmed bin Sulayem aimed to make Dubai a global trade hub and noted that the blockchain will help to overcome many complex procedures and accelerate customs clearance, and commercial transactions.
“We believe that adopting modern technologies like blockchain will significantly contribute to improving the business environment and enhancing Dubai’s position as a major center for global trade.”
The introduction of blockchain will also help in the execution of supply chain transactions and data sharing, which will reduce the paperwork involved in processing.
However, according to 2022 academics, there will be a major problem in the mass adoption of this technology. In 2022, the same initiative taken by an American company, IBM, flopped due to the lack of global industry collaboration and shut the TradesLens.
Despite IBM, many companies are working smoothly on the blockchain platform. VeChain, a smart contract used to track supply chains has been in operation since its launch in 2016. Since 2019, Chainlink, used in the automation of the supply chain has also operating smoothly.
Dubai Customs also launched a blockchain platform in January 2020 to simplify cross-border e-commerce.
