Dubai: DP World Trade Finance, a fintech platform owned by DP World, has partnered with UAE Trade Connect (UTC) to transform trade finance and combat fraud across the UAE. With the partnership, DP World Trade Finance could leverage UTC’s platform to detect fraudulent and suspicious invoices as a risk mitigant for its lending capability, said the company on Monday.
DP World Trade Finance is the first non-bank financial institution participant with direct lending capabilities and embedded fintech value proposition to join the UTC consortium. Created in 2021, UTC is a blockchain-enabled consortium-led trade finance solution co-created by e& enterprise and the UAE banking industry.
Sinan Ozcan, Senior Executive Officer of DP World Trade Finance, said, “If we are to address the trade finance gap truly, we need organisations to work together to build transparency and security into financial processes.”
Dh 170 billion
worth of invoices have been presented to UTC for validation
DP World Trade Finance connects businesses with financial institutions, directly offering trade finance facilities. Ozcan said the DP World subsidiary hopes to work with UTC members to transform trade finance by building transparency into the lending process.
Zul Javaid, CEO of UTC, said, “DP World Trade Finance’s addition to the UTC consortium is a step in recognising that the country’s lending ecosystem is diversifying, with emerging fintech companies and alternate lenders entering the space.”
Javaid said that lenders using UTC’s platform have already presented over Dh170 billion worth of invoices for validation and analysis.
With the recent enactment of the Invoice Factoring Law in UAE, the UTC blockchain platform will play a key role in enabling lenders to increase offerings to SMEs. The companies explained it would enhance lending confidence and transparency, facilitating increased opportunities.