UAE Trade Connect launches digital trade platform with 7 banks

By Leandra Monteiro

UAE Trade Connect (UTC), a new nationwide blockchain platform, has officially gone live on 19^th April 2021 to help financial institutions combat fraud and duplication. The blockchain platform co-created by Etisalat Digital and seven UAE banks and Avanza Innovations was initially ideated by First Abu Dhabi Bank to tackle key issues in the trade finance space.

The steering committee for the platform consists of the Central Bank of the UAE, 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.

According to media reports, 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 minimize 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.”

According to media reports, Zulqarnain Javaid, CEO, UAE Trade Connect 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.”

The initial phase of the platform 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 and e-invoices. UAE Trade Connect aims to drive the digital transformation of trade in the UAE by enabling banks, organisations and government authorities to all benefit from future technologies.