DP World Financial Services (DPWFS), a firm belonging to DP World, has decided to facilitate access to trade finance for smaller companies.
The moves comes as part of DP world’s strategy to become a global trade enabler.
The Dubai Financial Services Authority has granted DPWFS a license to operate as an authorized firm in Dubai International Financial Centre (DIFC).
DPWFS will connect companies needing trade finance solutions with financial institutions on its DP World’s CARGOES Finance platform.
DP World’s CARGOES Finance Platform intends to bring real-time data on trade passing through its digitalized global ports and logistics network to give financial institutions the information they need to accurately assess credit and compliance risks.
The bulk of economies around the world, including in Dubai, are made up by small and medium sized enterprises (SMEs).
However, SMEs struggle to obtain the capital they need because there is limited data available on their trading history.
In addition, manual, paper-based processes used to move goods around the world mean there is limited visibility on where goods are in transit making it difficult for financial institutions to finance shipments.
Sultan Ahmed Bin Sulayem, CEO and chairman of DP World, said: “DP World’s objective is to enable global trade, including through digital innovation. Access to trade finance is critical to the survival and growth of exporters, importers and logistics companies which are the drivers of the global economy.”
“CARGOES Finance platform provides financial institutions the opportunity to lend with confidence and helps smaller companies to access the capital they need. It will be a lead generator and source of new business for financial institutions, and a window of financing opportunities for traders,” he added.
For his part, Mike Bhaskaran, COO of DP World, said: “We are excited to work with DIFC to help enterprises get improved access to trade finance. This project is an important part of DP World’s strategy to be a global trade enabler, creating opportunity and prosperity. Together with DIFC we aim to make Dubai an ever more significant hub for the world’s trade.”
Arif Amiri, chief executive officer of DIFC Authority, said: “DIFC is home to over 3,200 firms and we are delighted that DP World is joining them, recognising the opportunities available in the Centre to help diversify their business. DIFC and DP World are helping reaffirm Dubai’s reputation for being the region’s most business friendly destination, shaping the future of finance and as a global hub for trade.”
“Operating from DIFC will give DP World access to the many financial services companies in our ecosystem who provide solutions that facilitate global trade through Dubai. Those firms will be able integrate with the CARGOES platform which provides an innovative approach focused on giving support to small and medium businesses who play an important role in our economy,” he added.