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The Dubai Chamber of Commerce and Industry (DCCI) have signed a Memorandum of Understanding (MoU) with Emirates NBD, a major bank in the region, under which the bank will provide trade finance solutions for the Digital Silk Road. This is a Dubai 10X initiative using blockchain technology to digitize and simplify trade processes.

According to a news report on October 14, the DCCI; the international business hub in Dubai, signed an MoU with the state-owned bank, Emirates NBD. The bank is the largest banking group in the Middle East in terms of capital assets.

Moreover, Dubai 10X is a program where government departments; are tasked with researching and applying new technologies to their administration and daily operations. Additionally, the Digital Silk Road initiative; currently being developed by DCCI in conjunction with DP World – UAE Region and Dubai Customs along with Emirates NBD; is expected to go live in 2020.

Adoption of Blockchain on the Rise

In addition, Hamad Buamim, President and CEO of Dubai Chamber said the agreement with Emirates NBD is a major leap forward for the Digital Silk Road. The initiative is designed to streamline procedures, remove trade hurdles and ease conducting business in Dubai. He added:

“Trade finance remains one of the most important tools used today to facilitate international trade and commerce as it simplifies transactions for importers and exporters.”

Furthermore, Abdulla Al Qassim, Vice-Chairman and Managing Director of Emirates NBD added:

“Emirates NBD was the first in the region to successfully pilot a blockchain use case; for trade finance and we look forward to lending our expertise and support to the Digital Silk Road initiative. We are working on a shared vision; of a seamless trade finance experience across stakeholders that would help in further consolidating; Dubai’s position as a leading and efficient trade hub in the world.”

Bottom Line

In conclusion, DCCI had signed an MoU in July with the International Chamber of Commerce (ICC) and Singapore-based blockchain startup; Perlin to promote the adoption of blockchain trade solutions. The same month, the DCCI joined another partnership with the Dubai International Financial Center; Mashreq Bank and fintech firm Norbloc to develop a blockchain-based Know Your Customer (KYC) data-sharing consortium in 2020.