Mahmood Al Bastaki, COO, DT World & Chairman, Dubai Trade • Interview

How is Dubai maintaining its position as the regional hub?

Being a trading hub for the cargo business is something that every country wants, and there is legitimate competition in the region in the shape of Oman and Abu Dhabi. However, Dubai has the advantage of being the first mover in the region. Jebel Ali handles more containers than India. Combining import and transshipment figures, Jebel Ali handles 15 million containers annually. This shows the magnitude of Dubai. A lot of neighboring countries are trying to mimic Dubai’s concept; however, a hub is not created overnight. Being a hub requires a cohesive ecosystem. We have gone through the learning curve and have this competitive edge. As a result, more companies and regional heads of companies are coming to Dubai. We will continue to give more opportunities to these players to make it more difficult for any competitors to catch up. DP World’s chairman wants Dubai to be 15-20 years ahead, so there is a group-wide focus on this. Technology is a major component of this. Dubai Trade was launched in 2003 as an online cargo clearance platform. Building on the success of Dubai Trade at Jebel Ali, we want to take this concept worldwide. Dubai Trade is still serving Dubai and Jebel Ali, but we created an international brand called DT World. We have done digital solutions for cargo clearance across the world, largely through DP World’s global portfolio of ports, free zones, and logistics parks. Our role is to implement digital solutions to complement the topnotch hard infrastructure with innovative soft infrastructure. This digital aspect of DP World will streamline and power cargo movement across the globe and make Dubai stronger. Nowadays, data is the key to doing business. DP World is one of the most active port operators; we are an effective trade enabler facilitating business across supply chains. That is what will make Jebel Ali more competitive; the whole new vision of DP World is to maximize the utilization of ports and hard infrastructure.

“Much like Uber, we will tap into convenience and transparency to fill the many gaps in the importexport business.”

Active in various markets of different levels of technological sophistication, how is the DT World solution suitable for all?

80% of the business of cargo movement is the same all over the world. For example, looking at customs declaration, the types of contracts and incoterms of business between the buyer and the importer or exporter are internationally agreed upon. Language is one thing that varies from region to region, and our solution is language agnostic. The remaining 20% is about the peculiarity of each region or market, and we customize our solution to adapt accordingly. Our biggest competitive advantage is not the IT part but the trade business process domain expertise. We are a business innovation company propelling digital transformation. We create and provide solutions to help businesses deliver better productivity, increase efficiency, reach new markets, and increase revenue.

How is DT World leveraging on the opportunities created by Expo 2020?

We are working with the Expo directly. We are doing a project for pavilion owners to bring their goods from all over the world and creating streamlined processes for them. We have over 20 free zones in Dubai so the story of Dubai will continue through the legacy of Expo 2020.

What is your vision for Dubai Trade and DT World?

In terms of ocean freight, there are many fragmented systems that are not well integrated. Our challenge is to make it more streamlined. Our vision is to become the platform of choice that digitally integrates stakeholders and facilitates cargo movement at every step of the process. Infused in this integrated process will be trust, transparency, and scalability. Moreover, we seek to bridge gaps in trade finance and insurance by introducing innovative digital solutions. We are entrepreneurial, open minded, and determined to create solutions and solve pain points for success. Much like Uber, we will tap into convenience and transparency to fill the many gaps in the import-export business. ✖

Can you elaborate on Dubai Customs’ smart government initiatives and other innovative capacities?

Dubai Customs recently won the innovation platinum award with a six-star rating from EFQM Global Excellence Award, scoring 700 points out of 1,000, the highest among all participating organizations. With this exceptional achievement, Dubai Customs has become the first organization in the world to win this reputable global award based on the new rating system in 2019. Winning the EFQM award is an international recognition of our leading achievements and the advanced level we have reached in customs innovation. The objective of the EFQM Excellence Award Program is to recognize role model organizations around the world. The program has one of the most challenging assessment processes. As a role model organization, we have invested in innovation in order to develop and upgrade customs procedures to introduce the best services and trade facilities. As a leading government department, Dubai Customs has introduced different development programs and innovative systems that help maintain its leading position in the Emirate. These include the Smart Risk Engine, Mirsal, and the Authorized Economic Operator. We recently launched the second phase of the productivity engine, which showed positive results across multiple indicators. The engine, developed in-house by Dubai Customs, uses AI to boost productivity, reduce costs, and ensure customer satisfaction. We are targeting 8% to 10% increase in productivity over the next 12 months. We have certain targets that we look forward to, which include reducing workload by 16.8%, increasing productivity by 35.5%,

Indicators for 1H2019 showed that Dubai’s external non-oil trade grew 31% YoY. In terms of value, external trade rose 5% YoY to AED676 billion from AED644 billion. Notably, between 2009 and 2019, external trade has made a stunning 87% growth. These results reflect Dubai’s robustness in turning challenges that face global trade into opportunities and achievements and its ability to attract investments from around the world. Exports made the biggest growth in 1H2019 with 46% in weight to reach 10 million tons and 17% in value to AED76 billion. Re-exports grew 39% to 9 million tons and rose in value 3% to AED210 billion. Imports also grew in weight 26% to reach 38 billion tons and in value by 4% to AED390 billion. The prospective for trade activity in our region is positive, and we are optimistic about the future, especially with the advent of Expo 2020 and the UAE’s strategy for the next 50 years.

Can you comment on Dubai Customs’ global prominence amongst customs organizations?

Hosting the fifth WCO Global AEO Conference in March 2020, in cooperation with the Federal Customs Authority, is an indication of the world’s confidence in the potential and capabilities of Dubai Customs. Through its publications, the World Customs Organization has repeatedly highlighted the advanced procedures and practices followed by Dubai Customs. This included a report titled "Dubai Customs’ journey into the future of customs," which focuses on development programs and a number of articles on the Virtual Corridor initiative, the Authorized Economic Operator, the iDeclare application, and the Virtual Training program. Hosting the conference is part of Dubai's efforts in maintaining its leading position as trade hub.

How will Expo 2020 impact the economy, and what is Dubai Customs’ involvement in the event?

Dubai Customs has dedicated a customs clearance channel, named Expo 2020 Smart Customs Channel, through which it will deliver preferential services to Expo 2020 participants and exhibitors. Shipments will be cleared in record time to enable exhibitors to effectively take part in the grand event. Expo 2020 will have a positive impact on the national economy and the development of the tourism, aviation, retail, and shipping sectors. ✖