Dubai Customs has launched a new blockchain platform to optimize commercial operations in the region, which is increasingly seen as a pro-tech market. In an attempt to address some of the obstacles hindering Dubai’s entrepreneurial sector, the customs department is exploring the use of blockchain technology to increase transparency and facilitate the process of sharing data in a tamper-proof manner. The blockchain platform was unveiled on Monday and is touted to offer secure, efficient, economic plans as well as technology-driven logistics initiatives.
Sultan Ahmed bin Sulayem, chairman of Dubai’s Ports, Customs, and Free Zone Corporation, called the upcoming blockchain platform a ‘quantum leap’ in improving Dubai’s business and commercial operations.
“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,” Sulayem said in a prepared statement.
Blockchain technology, also known as distributed ledger technology, stores data on multiple nodes — which prevents data from being concentrated on a single server like traditional servers. This makes it difficult for malicious hackers to break into networks. In addition, all data that is stored on blockchain networks leaves a permanent trace, which brings transparency to business.
customs #Dubai announces the launch of its innovative Blockchain platform, in a pioneering step aimed at improving the efficiency and transparency of commercial operations within Dubai and across borders, as this secure and efficient digital network is an important achievement in the digital transformation process. https://t.co/fSThXtvpcS@DubaiCarina pic.twitter.com/DBUN3J7IpO
— Dubai Media Office (@DXBMediaOffice) July 8, 2024
Dubai authorities also want to take advantage of other blockchain capabilities such as real-time tracking of goods and combating cases of fraud and counterfeiting.
However, this is not the first time that Dubai has explored the use of blockchain technology. In May, it unveiled a strategy aimed at making the region one of the top ten economies well versed in metaverse technology.
Dubai previously engaged the Solana Foundation to provide blockchain infrastructure for its October 2023 free economic zone, called the Dubai Multi Commodities Center (DMCC) to help companies operating there scale up their business.
