DMCC Future of Trade: Tech to bridge $1.5 trillion trade finance gap and accelerate SME growth

Ripe for industrialisation in the trade sector, technology advancements could bridge the current $1.5tn trade finance gap, with potential to inject new growth in trade, according to a report on ‘The Future of Trade’ from DMCC, the world’s flagship Free Zone and Dubai government authority on commodities trade and enterprise.

The research highlights the emerging impact of digital transformation for importers and exporters, and the world’s top ten commodity trading hubs, along with the ongoing shifts in global economic power.

The report states that 50% of SME funding applications are rejected by banks and that alternative trade finance, powered by FinTech and Blockchain, is on the rise. For example, the alternative finance market in the APAC region more than doubled between 2015 and 2016 to the total value of $245.2 billion.

The report also notes that Blockchain is likely to redefine the trade sector over the next decade, providing faster, more secure and effective ways to handle workflows and move goods across borders, but that large scale progress is still to be made.

Estimates indicate that Blockchain could increase global GDP by nearly 5% and trade volumes by 15%.