IBM unveils blockchain initiative to track import and export of goods in Dubai
Dubai’s government is advancing its blockchain strategy with IBM collaboration
IBM has announced it is collaborating with Dubai Customs, Dubai Trade and IT provider DUTECH, to explore the use of blockchain for a trade finance and logistics solution for the import and re-export process of goods in and out of Dubai.
The blockchain solution will use Hyperledger Fabric and IBM Cloud to transmit shipment data allowing key stakeholders to receive real-time information about the state of goods and the status of the shipment.
The goal of the trade finance and logistics blockchain-based solutions is to replace paper contracts with smart contracts, by leveraging IBM Watson IoT for device-reported data to update or validate smart contracts; and integrates all the key trade process stakeholders from the ordering stage, in which the importer obtains a letter of credit from their bank, through the intermediary stages of freight and shipping, and ending with customs and payment.
Amr Refaat, general manager, IBM Middle East and Pakistan, said: "IBM believes that blockchain will do for transactions what the internet did for information. Our collaboration today with leading Dubai organisations across different sectors in trade finance and transportation will showcase how blockchain will revolutionise the way businesses interact with one another and with their customers and suppliers."
In February 2016, the Dubai government declared its interest to become a blockchain hub, and as part of this the Dubai Museum of the Future Foundation established the ‘Global Blockchain Council' in which IBM is a member. Dubai also plans to execute all its transactions on a blockchain by 2020, as a part of its "Dubai Blockchain Strategy."
Furthermore, IBM is collaborating with UAE telecom du, Emirates NBD bank, Banco Santander and Aramex.
Related: What is blockchain?