Dubai Islamic Bank (DIB) has announced that it has become an official member bank of UAE Trade Connect (UTC).
UTC is the first commercialised blockchain platform of its kind in the UAE built on advanced technologies; launched commercially on 19 April 2021, the platform was co-created by Etisalat Digital, seven leading UAE banks and Avanza Innovations.
UTC is a ‘cloud native’ solution running on Etisalat’s E1 Cloud, underpinned by distributed ledger technology and built around artificial intelligence capabilities. The platform prevents fraud and duplication, detects dubious transactions and supports multiple types of trade-related documents that must be inspected and validated for authenticity. Combined, its technologies ensure trust, transparency, and privacy between multiple organisations.
Commenting on the partnership, Dr. Adnan Chilwan, Group Chief Executive Officer at Dubai Islamic Bank, said: “Joining UAE Trade Connect as a member bank is an important milestone for Dubai Islamic Bank as we set out to mitigate the risk of fraud and safely move towards a fully digitised trade finance ecosystem. UAE banks work hand in hand to promote financial stability in the nation’s financial system and contribute to UAE’s robust economy. Hence, becoming part of UTC Digital Trade Platform is one of the major steps we have taken in achieving this milestone. The distributed ledger technology used to create UTC provides DIB and other UAE banks with a decentralised, immutable, and completely transparent way of organising data that reduces the risk of fraudulent transactions.
“Until now, a centralised 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 digitisation space that has the capacity to make trade financing more accessible, affordable and equitable. At DIB, we are focused on providing value-added transaction banking solutions and look forward to supporting our clients in the safest way possible.”
Salvador Anglada, CEO Etisalat Enterprise Digital further commented: “We are excited to have Dubai Islamic Bank, the largest Islamic bank in the country, partner with us, thus strengthening the UTC consortium. This reflects the banking sector’s commitment to accelerate the digital transformation process and prepare the UAE to enter into the new digital banking era. UTC is recognised as one of the most successful use cases for blockchain technology today, and a multi-award-winning platform that leads the way to digitise trade finance in one of the world’s most important trading hubs.”
DIB will also join the UTC steering committee comprising the Central Bank of the UAE and seven leading UAE banks. With many more banks already planning to join the platform, UTC is fast becoming the national trade finance platform of the UAE.