TradeTech is More Than Just Technology, It's the Future of Inclusive Trade

Trade is the lifeblood of our global economy. Despite a robust start in 2023, looming challenges like revised economic forecasts, persistent inflation, and geopolitical tensions threaten to slow the momentum. However, modern technology offers a beacon, promising not just growth, but a more inclusive era for global trade.

As a passionate advocate for the digital transformation of trade, I've always championed the belief that the future of this field is digital. The landscape of TradeTech, an amalgamation of trade and technology, is as dynamic as it is vast. It represents our endeavour for a trade system that prioritises efficiency, transparency, and, most importantly, accessibility.

A Vision for the Future

According to AgileIntel Research, the global B2B eCommerce market reached a valuation of US$17.9 trillion in 2021 and is projected to exceed US$36.2 trillion by 2026.? Now imagine a slice of that enormous market being accessible to businesses, irrespective of size and place. They can predict market trends and respond in real time, opening doors to untapped opportunities. It's not a distant utopia; we're on the precipice of this new reality.

Thanks to technology, trade is undergoing a revolution. Consider the role of AI that will provide enhanced digital user experience, unleashing data-powered decision-making and predictive intelligence to all stakeholders in the value-chain. Or the IoT, which according to IDC, is anticipated to see investments nearing $1.1 trillion by end 2023, enhancing the efficiency of our warehouses and shipping processes. Blockchain presents another compelling angle, particularly when reflecting on the concerning loss to counterfeits and many other inefficiencies in logistics and payments.?

Moreover, the rise of B2B marketplaces is reshaping the global trade dynamic. But at the core of my interest is TradeTech's potential for SMEs. Representing 90% of all businesses and accounting for over half of global employment, as cited by the World Bank, the empowerment of SMEs is more than just a business mission; it's about shaping the future of our global community.

TradeTech's Potential and Priorities

It is undeniable that TradeTech has a strong influence on supply chain management, particularly when we observe the anticipated growth of the global blockchain supply chain market. Mordor Intelligence forecasts this market to soar to $9.85 billion by 2025, a significant leap from its valuation of $93.16 million in 2017.

Two areas emerge as front-runners in this evolution: Logistics and Trade Finance. A telling report from the Global Trade Review highlights the disparities in the trade finance landscape. While nearly 60% of SMEs have seen their trade finance applications declined in recent times, only 10% of applications from multinational corporations faced rejection. Such disparities underscore the pressing need for a more inclusive TradeTech ecosystem on a global scale.

The Roadblocks Ahead

The landscape of TradeTech is clearly rich in potential, but its full-scale adoption presents certain challenges. Regulatory differences across regions complicate a universal TradeTech approach. Data security remains a paramount concern. The complexity and cost of new technology implementation can be daunting, particularly for SMEs. And, of course, there's the challenge of shifting from well-established trading practices that have been around for decades.

The UAE and KSA: Pioneers in TradeTech

The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA), are shaping the future of TradeTech in the Middle East through visionary national plans and strategic investments. The UAE's Vision 2021 and KSA's Vision 2030 emphasise transforming their economies with digital innovation, fostering environments that champion e-commerce, digital payments, and logistic tech solutions. Both nations have invested significantly in digital infrastructure, from state-of-the-art ports with automated systems and high-speed internet connectivity.?

Equally commendable are their efforts in blockchain, where the UAE aspires for Dubai to be a blockchain-powered city by 2030, and KSA, with its monetary authority, is delving deep into its banking potential. Collaborations and partnerships play pivotal roles, as both countries engage with global tech giants and startups, emphasising a shared vision of modernised trade. Recognising the crucial role of SMEs, both nations are forging pathways to empower these enterprises, solidifying their commitment to an inclusive and technologically advanced trade landscape.

TradeTech isn't just a buzzword; it's the future of global commerce, underpinned by concrete data and tangible results. As we witness nations like the UAE and KSA embracing this transformation, it's evident that we stand at the cusp of a trade revolution that is more equitable, efficient, and inclusive.?

Let's come together to turn this vision into reality.

This article is written by Marius Ciavola, a thought leader in B2B e-commerce and TradeTech in the MENA region. He covers technology and business trends in the growing B2B e-commerce industry. Follow him on https://www.dhirubhai.net/in/mariusciavola/