Dubai government entities have teamed up with IBM to use the technology behind digital currency Bitcoin to keep track of goods imported and exported through the emirate.
IBM said on Tuesday it was working with Dubai Customs, Dubai Trade and the Dubai government-owned information and communications technology company Dutech alongside Emirates NBD, du, Aramex and Banco Santander to come up with a high-tech system using blockchain technology to process payments and record imports and re-exports passing through Dubai.
Blockchain is a kind of electronic ledger that holds a list of data records hardened against tampering and revision.
Under the new system, traders, customs officials, freight companies, banks and airlines will be able to receive real-time information about the location and status of goods as they are shipped in and out of Dubai.
“Taking the example of a shipment of fruit, stakeholders involved in the process will receive timely updates as the fruit is exported from India to Dubai by sea and then manufactured into juice in Dubai, and then exported as juice from Dubai to Spain by air,” IBM said on Tuesday.
Last year, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of Dubai Executive Council, launched the Dubai blockchain strategy, pledging that the Dubai government would become paperless by 2020 by shifting all transactions to blockchain.
“IBM believes that blockchain will do for transactions what the internet did for information,” said Amr Refaat, the general manager at IBM Middle East and Pakistan. “Dubai is at the forefront of adopting this transformative technology, as government agencies and businesses realise the need to have a shared secured ledger that establishes accountability and transparency while streamlining business processes.”
In May, du announced a pilot scheme using blockchain for a safer common system for the sharing and verification of electronic health records between hospitals and clinics.
And in October, Emirates NBD said it was working with ICICI Bank of India on a pilot project to use blockchain for global remittances and trade finance.
Other initiatives include the use of blockchain by the Dubai Multi Commodities Centre for the transfer of Kimberley certificates to restrict the spread of conflict diamonds, and a pilot project between du, Loyyal (formerly Ribbit.me) and Dubai Tourism for a loyalty points tourism scheme for the emirate.
lbarnard@thenational.ae
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