Dubai Chamber’s ‘10X’ project aims to reshape global trade practices
Dubai Chamber of Commerce and Industry (DCCI), in partnership with the Dubai Future Foundation (DFF), has developed the Digital Silk Road project, which seeks to use blockchain technology to eliminate key complexities and weaknesses in the global trading system.
The project aims to further increase the transparency of supply chains through digital transformation and comprehensive process automation. The Digital Silk Road will support entrepreneurs in enhancing their innovative capabilities, accelerate business transactions, increase security and reduce trade in counterfeit goods, and provide reliable information to parties anywhere and anytime to enrich the experience of customers.
The project is one among several Dubai 10X initiatives launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Board of Trustees of the Dubai Future Foundation during the sixth edition of the World Government Summit held in February 2018 with the mission of placing Dubai 10 years ahead of other cities of the world.
The Digital Silk Road project aims to reshape the global trading system through a secure, advanced and environmentally friendly platform using blockchain technology that helps overcome current trade barriers such as high costs, lack of transparency, diversification of legislation and lack of security in business transactions.
“The Dubai 10X approach offers a way to overcome all the challenges and current constraints facing the trade sector by introducing a unique system,” said HE Hamad Buamim, President & CEO of Dubai Chambers of Commerce and Industry. “We have been able to develop a project that is aligned with the vision of the initiative and meets Dubai’s need for a platform that facilitates more cost-efficient, safer and faster trading. We can avoid all obstacles and unnecessary procedures and enhance our role as a trading chamber by using the latest technologies such as blockchain.”
“Dubai is well known for being a record breaking city where we strive to overcome the most difficult challenges across different circumstances. We believe that the Digital Silk Road will be a competitive project that will achieve the best records and rewrite the history of world trade. The emirate enjoys a strategic location that links traditional trade routes and has an advanced logistics infrastructure that enhances its position in the global trading system,” Buamim added.
Buamim pointed out that this project is part of the Dubai 2021 plan, especially its themes of ‘smart and sustainable city’ and ‘pivotal hub in the global economy’. The project will reinforce Dubai’s position as one of the most important business centres in the world.
The platform helps to track multilateral transactions, reduce transaction time and enable digital authentication in an encrypted and secure manner. It enables devices to interact directly with each other and improves the knowledge of assets and liabilities, as well as the possibility of creating applications such as smart contracts, digital portfolios, safe digital transfer of assets and information. This will help reduce other disadvantages such as lack of transparency, security, manual errors, increased paper usage and time spent on procedures.
The Digital Silk Road will also help enhance customer service, especially when it comes to fast delivery, availability and diversity of goods, and contributes to reducing the cost of trade through the use of new business processes.
The Digital Silk Road project will enable significant changes in different sectors, particularly in the pharmaceutical sector. The platform will also change the concept of trade, supporting entrepreneurs to become more innovative.
Dubai Customs is a key partner for the success of this project. The Chamber is also working with global partners, including ones from the Netherlands and the United States, to implement the initiative with the aim of starting the new project in the next eight months.