Friday, April 26, 2024
ReportUAE’s national blockchain-based trade finance platform welcomes first fully-fledged Islamic bank

UAE’s national blockchain-based trade finance platform welcomes first fully-fledged Islamic bank

One of the largest Shariah banks in the world, Dubai Islamic Bank (DIB), has become an official member bank of UAE Trade Connect (UTC), a national commercialized blockchain trade finance platform.

Launched on the 19th April 2021 by Etisalat Digital, seven UAE banks and Avanza Innovations, UTC is a blockchain solution running on Etisalat’s E1 cloud and built around artificial intelligence capabilities. The solution is designed to prevent fraud and duplication, detect dubious transactions and to support the verification and authentication of multiple types of trade-related documents.

“Until now, a centralized risk mitigation mechanism of this nature was non-existent systemically in the UAE banking sector. The benefits that UTC deliver will not only serve to protect DIB’s customers and the wider banking system but also enhance global trade. It is a milestone in the digitization space that has the capacity to make trade financing more accessible, affordable and equitable,” commented Dr Adnan Chilwan, the group CEO of DIB.

DIB will also join the UTC steering committee comprising the Central Bank of the UAE and seven UAE banks: Commercial Bank of Dubai, CBI, Emirates NBD, First Abu Dhabi Bank, Mashreq, National Bank of Fujairah and RAKBANK. More banks are expected to join the platform.

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