Dubai has been embracing distributed ledger technology for different projects in several areas. This time, the Dubai Airport Free Zone Authority (DAFZA) (an economic zone that covers Dubai’s International Airport) is working on the first commercial digital platform for free zones – Dubai Blink
Dubai embraces blockchain commerce
With this implementation, the zone will be the first one around the world that implements a digital commercial platform. Dubai Blink -as the platform will be called- will be part of the Dubai 10x initiative according to a statement released by Sheikh Ahmed Bin Saeed Al Maktoum.
“The Dubai Blink project will be one of the most innovative models for the future of global supply chains and e-commerce across the free zones. It will help boost trade for companies operating in Dubai’s free zones, which have chosen the emirate as a platform for growth and prosperity. We have directed the free zones to form a joint team to unite our efforts and expertise to make Dubai Blink a success and help achieve the aims of the Dubai 10X initiative – to make Dubai 10 years ahead of its time.”
It added that the initiative will enable both global companies and small and medium-sized enterprises (SMEs) to set up digital businesses in Dubai free zones without the need to be physically there.
The benefits of Blink
With the implementation of AI and blockchain technology, cross-border transaction costs and time will be radically cut, engagement between enterprises will grow, and international trade barriers and regulations will be reduced. The announcement comes in support of Dubai and the UAE’s vision to create smarter digital economies driven by innovation and technology. It is expected that the value of global B2B e-commerce will reach $7.7 trillion in 2018.
The first issue it will help solve is around identification. The lengthy supplier identification and processes in place for validation will be cut to a fraction of the current time requirements, as they will be provided by AI algorithms
The second benefit is centered around transactions . International trade barriers, regulations and transaction fees add unnecessary layers of complication. The convergence of free zone setups, AI and blockchain will radically cut cross-border transaction costs and time.
The project may take two years to be built and implemented, and it will be connected with other blockchain-related projects that Dubai already has on the books.