DMCC to boost sugar trade through Dubai

The platform under development will enable traders to purchase, store, and trade the sugar of Al Khaleej Sugar through smart contracts on a blockchain technology

  
Image used for illustrative purpose. A sugar cane plantation in Northern Queensland, Australia, at harvest time.

Image used for illustrative purpose. A sugar cane plantation in Northern Queensland, Australia, at harvest time.

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DUBAI- DMCC, the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise, has signed a strategic membership agreement with Al Khaleej Sugar and Universa Blockchain that sees DMCC trade flow support the development of a new sugar trading platform in the emirate.

The platform under development will enable traders to purchase, store, and trade the sugar of Al Khaleej Sugar through smart contracts on a blockchain technology provided by Universa.

The 'DMCC Tradeflow' platform will act as the central registry of ownership of the sugar through enforceable warrants to prove the existence of reserves, and enable secure and transparent international trade.

"This partnership will come as welcome news to investors, businesses and the international sugar trade as a whole. We are confident that when complete, this new platform will help drive significant international sugar trade volumes through the emirate of Dubai," said Feryal Ahmadi, Chief Operating Officer, DMCC. The signing ceremony was held during the Dubai Sugar Conference in Dubai on 10th February, 2020, and attended by Ahmadi; Jamal Al Ghurair, Managing Director, Al Khaleej Sugar; and Alexander Borodich, Founder and CEO, Universa Blockchain.

"As the largest standalone sugar refinery in the world, with a capacity to hold more than 1.6 million tonnes of sugar, we are delighted to be able to set up a sugar platform on a robust and established platform such as DMCC Tradeflow. And as the world's leading commodity trading hub, we look forward to working with DMCC to further boost the sugar trade in Dubai," said Al Ghurair. "Establishing a new sugar platform is a perfect example of how blockchain can be used to increase efficiency and transparency on an already secure platform," Borodich said adding, "It is encouraging to see such a prominent player in global trade implementing the next generation of technology.

I look forward to seeing the platform grow with the aid of our fully scalable blockchain platform." DMCC Tradeflow is an online platform that offers a secure and transparent central registry of ownership for commodities stored in Dubai. The title of stored commodities can be transferred or pledged through DMCC Tradeflow’s robust legal and Sharia compliant framework.

© Copyright Emirates News Agency (WAM) 2020.

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