IBM to try blockchain for Dubai businesses

Rage Review : IBM announced that it will explore the application of blockchain as a trade, financial and logistics solution with Dubai Customs, Dubai Trade and its IT service provider DUTECH. Dubai is a trade hub in the Middle East, connecting the Asian market with markets in Africa, Europe and other regions, hoping to improve the efficiency of import and export cargo tracking in the Middle East trade center in this way. The Dubai government also stated last year that it plans to transfer all transactions to the blockchain by 2020.

Translation: Annie_Xu

IBM is working to explore the use of blockchain in trade, finance and logistics solutions.

IBM said Tuesday it is working with several government agencies in Dubai to test blockchain technology that will help improve the efficiency of tracking imports and exports in the Middle Eastern trading hub.

IBM said the project partners include Dubai Customs, Dubai Trade and its IT services provider DUTECH to explore the use of blockchain as a solution for trade, finance and logistics.

Blockchain, which uses a shared digital ledger to track transactions or items, has gained the most attention in the global financial services industry, but is also attracting interest from supply chain management and other sectors.

IBM said that Dubai’s blockchain-based solution, for example, aims to replace paper contracts with smart contracts, which will help reduce the complex documentation associated with cargo tracking, transportation and transfer. Key stakeholders can also receive real-time information on the status of goods and shipments.

Arvind Krishna

"The technology will help improve security and transparency and reduce fraud such as money laundering," said Arvind Krishna, IBM senior vice president and head of research.

Since it does not own oil itself, Dubai uses its ports and free trade zones to become a major trade hub in the Middle East, connecting Asian markets with those in Africa, Europe and elsewhere. In the first nine months of 2016, the country's non-oil foreign trade totaled about $259 billion, according to the Statistics Center.

The Dubai government said last year it planned to move all transactions onto blockchain by 2020 as part of a strategy to achieve greater efficiency in its sectors.

Blockchain has not yet been widely deployed for commercial use, but many large global companies such as Walmart stores are testing the technology.

As part of the Dubai solution, IBM said it will also work with banks involved in trade finance.