Dubai Customs Launches New Blockchain System
YEREVAN (CoinChapter.com) — Dubai Customs has introduced a new blockchain system designed to improve supply chain efficiency within Dubai and across its borders. This initiative is part of a broader strategy to establish Dubai as a leading smart city, according to a July 8 statement by the Dubai Media Office.
Blockchain Trade Transformation. Source: Dubai Media Office Dubai Customs’ Blockchain Vision for Global Trade Efficiency
Ahmed bin Sulayem, Chairman of the Ports, Customs, and Free Zone Corporation, outlined the vision behind this launch.
“This innovation reflects our vision to make Dubai a global hub for trade and logistics,”
he said. The blockchain system aims to reduce time and effort by streamlining customs clearance and commercial transactions. It will also enhance transparency in the supply chain by facilitating tamper-proof data sharing and reducing paperwork.
Dubai Customs’ new technology is set to make the business environment in Dubai smoother, more streamlined, and transparent. Dr. Abdullah Busnad, Director General of Dubai Customs, emphasized the importance of this initiative in enhancing the business ecosystem.
Challenges and Progress in Technology Adoption for Supply Chains
Blockchains have been recognized as a potential solution for real-time tracking of items in supply chains and for combating fraud and counterfeiting. Despite their promise, there have been obstacles to widespread adoption.
Barriers to Blockchain Adoption in Global Value Chains. Source: Journal of Industrial and Business Economics, 2024
For instance, IBM and Maersk discontinued their TradesLens system in November 2022, citing a lack of global industry collaboration.
However, many other systems and blockchains are actively working in the supply chain space. VeChain, a smart contract-compatible blockchain, has been used for supply-chain tracking since its launch in 2016. Chainlink has been automating supply chains since 2019, and the Hong Kong-based Global Shipping Business Network (GSBN) is also a notable player.
Dubai Customs Launches Blockchain Platform for Cross-Border E-Commerce
In January 2020, Dubai Customs launched a blockchain-based platform to facilitate cross-border e-commerce. This new effort builds on previous initiatives, aiming to further enhance the efficiency and transparency of Dubai’s supply chains.
Dubai Customs Cross Border e-Commerce Platform Launch. Source: Dubai Customs
Above all, Dubai Customs is confident that adopting modern technologies like blockchain will significantly improve the business environment. Additionally, Ahmed bin Sulayem noted,
“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.”
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