DUBAI / WAM
Industrial readiness in the trade sector and technology advancements could bridge the current $1.5 trillion trade finance gap, with potential to inject new growth in trade, according to a report on ‘The Future of Trade’ from DMCC, the world’s flagship Free Zone and Dubai government authority on commodities trade and enterprise.
The research highlights the emerging impact of digital transformation for importers and exporters, and world’s top ten com- modity trading hubs, along with ongoing shifts in global economic power. The report states that 50% of SME funding applications are rejected by banks and that alternative trade finance, powered by FinTech and Blockchain, is on the rise.
The report also notes that Blockchain is likely to redefine the trade sector over the next decade, providing faster, more secure and effective ways to handle workflows and move goods across borders, but that large scale progress is still to be made. Estimates indicate that Blockchain could increase global GDP by nearly 5 percent and trade volumes by 15 percent.
Ahmed Bin Sulayem, Executive Chairman, DMCC, said: “Trade and trade finance will be revolutionised by Blockchain and other emerging technologies. The UAE and Dubai are advancing fast by looking well into the future to capitalise on these changes critical to retaining our position as the world’s number 1 commodities trade hub.”