Blockchain technology is being used for sugar trading in the United Arab Emirates (UAE) as the country plans to expand its blockchain strategy by 2021.
The world’s largest sugar refinery, Al Khaleej Sugar, announced that it would eliminate brokers and allow customers to trade token sugar around the clock. This latest development fits in with the UAE’s blockchain strategy goals for 2021.
According to Al Khaleej Sugar’s announcement, blockchain technology will be used on the DigitalSugar.io platform. The company launched a trading platform that allows people to trade token sugar from all over the world.
“DigitalSugar provides access to one of the world’s most popular soft commodities through a fully online platform supported by DMCC Tradeflow, a dedicated online platform for registering ownership and possession of goods stored in storage facilities in the UAE,” added the blog post.
The DigitalSugar platform was developed in collaboration with the Free Zone, the Government of Dubai Government for Commodities Trading (DMCC) and the Universa Blockchain. It is the first global exchange to offer traders the opportunity to trade raw point sugar. Most platforms offer sugar trading as standard options or futures.
DigitalSugar platform users trade the spot price of sugar with tokens. The tokens are bound up to 100,000 tons of raw sugar. The bound tokens are secured by the Universa blockchain, which was charged with issuing electronic certificates of ownership for the sugar tokens. Therefore, traders and investors can hold tokens with a value of around 1 kg to 1 million t. You pay 0.4% as an exchange fee and an annual storage fee of 2.5%.
Jamal Al Ghurair, Managing Director of Al Khaleej Sugar, commented on this latest development, stating that Emirates’ blockchain strategy for 2021 was a government action launched in 2018. The strategy is to allow the UAE to use blockchain technology to improve various aspects of the economy.
Al Ghurair added that Al Khaleej Sugar is using the most advanced technologies to tag raw materials and promote digital trade as the world battles the COVID-19 pandemic. Al Khaleej Sugar is also committed to updating current trading options and labeling around 100,000 tons of raw sugar.
The PwC study found that widespread adoption of blockchain technology could gross the global economy an additional $ 1.7 trillion over the next decade. Al Khaleej Sugar wants to enjoy the dividends of technology.
Currently, Al Khaleej Sugar accounts for around 3% of the world’s annual refined sugar production. The company’s products are regularly exported to over 50 countries around the world, including the Arabian Gulf countries.