A subsidiary of Dubai-based DP World is to begin facilitating access to trade finance for smaller companies as part of its parent company’s strategy to become a global trade enabler.
DP World Financial Services Limited has been granted a licence from the Dubai Financial Services Authority to operate as an authorised firm in Dubai International Financial Centre (DIFC).
The newly licenced firm will connect companies needing trade finance solutions with financial institutions on DP World’s CARGOES Finance platform.
Small and medium sized enterprises make up the bulk of economies around the world, including in Dubai. But they 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.
DP World’s CARGOES Finance Platform intends to bring real-time data on trade passing through its digitalised global ports and logistics network to give financial institutions the information they need to accurately assess credit and compliance risks.
Sultan Ahmed Bin Sulayem (pictured above), 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.”
Arif Amiri, CEO of DIFC Authority, said: “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.”
CARGOES Finance is being launched first in Dubai and can be accessed via the CARGOES platform at https://cargoes.com/finance
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