World’s Largest Sugar Refinery Implements Blockchain Technology in its Spot Sugar Trading Platform
Al Khaleej Sugar, the first sugar refinery in the Arabian Gulf region and the world’s largest, has revealed the implementation of blockchain technology in its sugar trading platform, named Digitalsugar.io.
The clients of UAE based Al Khaleej Sugar will be able to use the recently rolled out platform and trade spot sugar using tokens linked to “up to 100,000 tonnes of raw sugar,” with the peg guaranteed by the Universa blockchain, which will issue digital certificates of ownership on the basis of tokens held by clients.
Tokens representing from 1 Kg to 1 million tons are available. The exchange charges a fee of 0.4% in addition to yearly storage fee of 2.5%.
The platform, rolled out in collaboration with the popular Free Zone, Government of Dubai Authority on commodities trade (DMCC) and Universa Blockchain, is the foremost international exchange to facilitate raw spot sugar trading by investors and traders on a real time basis, instead of the usual futures or options contracts offered by other commodity exchanges.
Jamal Al Ghurair, Managing Director, Al Khaleej Sugar, stated that the rollout of a blockchain technology based sugar trading platform in in sync with the broader objective of UAE Blockchain Strategy 2021, launched three years before by his Highness Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai.
The Emirate Blockchain Strategy 2021 is a grandiose plan of shifting a minimum of 50% of government linked dealings to distributed ledger technology (DLT) based platforms before the end of 2020.
Sheikh Mohammed explained the benefits of blockchain implementation
“The adoption of this technology will reflect on the quality of life in the UAE and will enhance happiness levels for citizens. 50 percent of government transactions on the federal level will be conducted using Blockchain technology by 2021 … This technology will save time, effort, and resources and enable individuals to conduct most of their transactions in a timely manner that suits their lifestyle and work.”