Dubai Customs Launches Blockchain Platform to Enhance Supply Chain Efficiency


Aimed at lowering supply chain friction both inside Dubai and beyond, Dubai Customs has announced a new blockchain platform. According to a July 8 statement from the Dubai Media Office, this project fits within a bigger plan to confirm Dubai’s ranking as a top “smart” city.

Dubai sees a smart future

Emphasizing the need of this invention, Ahmed bin Sulayem, Chairman of the Ports, Customs, and Free Zone Corporation, “This idea reflects our vision to make Dubai a worldwide trade and logistical hub,” he said. “We think that implementing contemporary technologies such as blockchain will greatly help to improve the business environment and strengthen Dubai’s position as a big hub for world trade.”

Through streamlining of several processes, the recently introduced blockchain technology is meant to reduce time and effort by accelerating customs clearance and commercial transactions. The technology seeks to increase supply chain openness by enabling tamper-proof data sharing and thereby lowering the requirement for copious documentation.

Said Dr. Abdullah Busnad, Director General of Dubai Customs, “the aim is to make the business environment in Dubai smoother, more streamlined, and transparent.”

Blockchain for Supply Chains

Long praised as a revolutionary way to monitor the real-time flow of goods throughout supply chains and fight counterfeiting and fraud is blockchain technology. Still, there remain obstacles in its general acceptance. For example, a prominent blockchain supply chain platform from IBM was decommissioned in 2022, The main cause of discontinuing the TradesLens project was identified by IBM and its partner, Danish logistics company Maersk: a lack of “global industry collaboration”.

Many blockchain systems flourish in spite of such obstacles. Since its 2016 introduction, VeChain—a smart contract-compatible blockchain—has been utilized for supply-chain monitoring. Likewise, since 2019 Chainlink has been helping with supply-chain automation. Based in Hong Kong, the Global Shipping Business Network (GSBN) has also become rather important in the field of blockchain supply chains.

Dubai Residents and Blockchain

Dubai Customs itself has been aggressive in using blockchain technology. Launched a blockchain-based platform in January 2020 to enable cross-border e-commerce, it shown its dedication to include modern technologies to simplify and improve trade flows.

This blockchain platform’s launch fits Dubai’s larger goal of using cutting-edge technologies to dominate worldwide in trade and logistics. Dubai wants to draw more foreign business and confirm its centrality in world trade networks by improving efficiency and openness in supply chain management.

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