UAE sugar trading to kick off on blockchain technology

Built through collaboration between Universa Blockchain, DMCC (Dubai's commodities authority and its Tradeflow platform), and the Free Zone, DigitalSugar represents a market first—an international exchange where traders can transact in physical sugar spots via digital tokens, rather than relying on conventional futures and options contracts.

The mechanics center on 100,000 tonnes of raw sugar collateralizing the token supply. Universa Blockchain issues electronic certificates of ownership, enabling participants to hold anything from one kilogram to positions exceeding one million tonnes. Exchange transactions carry a 0.4% fee, with annual storage running 2.5%.

Jamal Al Ghurair, managing director of Al Khaleej Sugar, framed the launch as leveraging sophisticated technology to modernize commodity markets amid pandemic challenges. The company plans to tokenize its entire 100,000-tonne inventory. Research from PwC underscores the economic case: widespread blockchain deployment could generate $1.7 trillion in additional global output over the next decade.

Al Khaleej Sugar commands roughly 3% of global annual refined sugar production and distributes its products across more than fifty countries, with particular strength throughout the Arabian Gulf region.