DP World to help SMEs with trade finance

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Cranes and trucks get ready near a container ship on May 5, 2015 in the Doraleh harbour in Djibouti. AFP PHOTO / CARL DE SOUZA (Photo credit should read CARL DE SOUZA/AFP/Getty Images)
  • DP World will connect companies needing trade finance solutions with financial institutions on its Cargoes Finance platform
  • The platform will disseminate trade data to financial institutions, so they can assess credit and compliance risks

DP World Financial Services Limited will soon start facilitating access to trade finance for smaller companies, said local reports on Wednesday, August 11.

This is part of the strategy of its parent company DP World — itself a subsidiary of Dubai World, the emirate’s flagbearer in global investments — to become a global trade enabler, said the reports.

According to a company statement, DP World Financial Services Limited has been granted a license from the Dubai Financial Services Authority to operate as an authorized firm in Dubai International Financial Center, or DIFC.

The newly-licensed firm will reportedly connect companies — usually small and medium-sized enterprises, or SMEs — needing trade finance solutions with financial institutions on its DP World’s Cargoes Finance platform.

The Cargoes Finance platform intends to disseminate real-time data on trade, passing through its digitalized global ports and logistics network, to financial institutions, said the local reports.

This will apparently give such institutions the information they need to accurately assess credit and compliance risks.

The reports quoted DIFC Authority CEO Arif Amiri as saying: “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.”

He added: “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”.

The reports quoted DP World COO Mike Bhaskaran as saying: “This project is an important part of DP World’s strategy to be a global trade enabler, creating opportunity and prosperity.”

He added: “Together with DIFC we aim to make Dubai an ever more significant hub for the world’s trade.”