UAE Trade Connect (UTC), a new nationwide blockchain platform co-created by Etisalat Digital and seven UAE banks and Avanza Innovations and initially ideated by First Abu Dhabi Bank, has gone live.
This platform invites all UAE banks and the supply chain industry to join the platform to combat fraud and duplication, among other issues in the trade finance space.
The statement said that the platform is based on blockchain and other disruptive technologies such as Artificial Intelligence (AI), Machine Learning, Optical Character Recognition (OCR) and Robotic Process Automation (RPA).
The initial phase will focus on addressing the risks of double-financing and invoice fraud before turning to other key areas of trade finance, such as digitalising bills of lading and e-invoices.
Etisalat Digital, along with the seven banks, has formed a working group to further develop and extend the solution to other areas of trade.
This nationwide platform, which is open for all UAE banks to join, will safeguard banks from potential fraud losses through advanced detection tools, allowing them to extend additional financing to their corporate and SME clients.
The steering committee for the platform consists of the Central Bank of the UAE and seven leading banks namely Commercial Bank International (CBI), Commercial Bank of Dubai (CBD), Emirates NBD, First Abu Dhabi Bank (FAB), Mashreq Bank, National Bank of Fujairah (NBF), and RAKBANK.
Dr. Sabri Al Azazi, Chief Operating Officer at the Central Bank of the UAE said,
“The Central Bank promotes financial and monetary stability, efficiency and resilience in the financial system. The launch of the UTC Digital Trade Platform is one of the key steps towards achieving this goal as it will help to minimise the risks of fraud inherent in the existing paper-based system in trade finance.
It also reflects the banking sector’s commitment to step up the digital transformation process to prepare the UAE to enter into the new digital banking era.“
Zulqarnain Javaid, CEO, UTC said,
“Today’s announcement is a milestone moment in the financial sector in UAE. Technological advancements are presenting innovative solutions to historic problems and enabling the sector to power forward.
The solution is aligned with the UAE government’s vision to bring futuristic technologies like blockchain and will be yet another enabler for economic growth”.
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