Transformation & Change108

Dubai Customs – Achieving Excellence through Agility

"Achieving Excellence through Agility" | Shahid Osmani

Shahid Osmani

February 18, 2020

OverviewRelatedHighlight

Download the slides Dubai Customs plays a critical role as a fundamental contributor in UAE’s economic growth, which largely relies on trade with other countries. Indicatively, the amount of Dubai’s trade activities facilitated by Dubai Customs during 2013-2018 reached approximately AED 7.5 billion. Dubai Customs handles significant volume of vessels, cargo shipments and passengers annually, which highlights its unique, diverse and immense magnitude and nature of business.

As a result, Dubai Customs has established and implements practices and systems that are comparable to global standards and is considered as a benchmark for all other customs administrations worldwide and has also been honored by the World Customs Organization (WCO) for its strategic plan, projects and initiatives. The ability of Dubai Customs to rapidly adapt to variables, opportunities and threats, when it needs to do so, in an effective and efficient way, becomes imperative to meet its objectives.

About Shahid Osmani

Photo of Shahid Osmani

Strategy & Execution Advisory @ Dubai Customs

For more than three decades Shahid has worked various capacities – as a Service Improvement Value Realization Expert, Adviser on Public Sector Service Costing and Business and Service Excellence. Shahid worked as a Practice Head – Process Improvement & Management, Senior Project Manager, Business Process Re-engineering / Improvement (BPR / BPI) and Business Process Management (BPM) specialist, an SAP FI/CO Consultant, a MIS manager and a Financial Analyst.

His curiosity to find innovative solutions to the perplexities faced by the modern businesses, attention to detail, and quick grasp of the business issues is of great value when the nature of the job is getting things done.

Shahid has the right mix of talent, expertise and attitude for the challenging job of being a pro-active change agent in the process creating an agile organization.

Presentation Slides

Summary Transcript

Dubai Customs has long needed to adapt quickly to opportunities and threats to fulfill its vision as a trade facilitator. Our agility journey officially began in 2013 when Sheikh Mohammed challenged all government entities to operate like hotels—open 24/7, providing uninterrupted services. We had a strict deadline to achieve this transformation.

On October 2nd, within just 100 days, we became the first government department in the UAE to achieve the Smart Government Vision. We were the first to have 100% client-facing services available on mobile. Initially, not all services were practical for mobile use—for example, filing a customs declaration via mobile was challenging. However, we refined the system and optimized certain services. Achieving this required more than just an IT transformation; it involved the entire organization aligning to respond to client requests at any time of day.

The results were remarkable:

  • 88% client satisfaction—exceeding our target of 79%.
  • 34% higher adoption rate than expected.

Our success in digital transformation positioned us as a pioneer in the customs world, implementing systems and best practices that have since been adopted globally.

Data-Driven Decision Making

We operate in a complex environment, influenced by external stakeholders, global legislation, and shifting trade demands. To maintain agility, we established the Dubai Customs Consultative Council, where major clients provide direct feedback. We also use customer feedback meters to gather real-time insights and continuously improve services.

Risk-Based Operating Model

Dubai Customs operates on a risk-based model, integrating various information sources:

  • Intelligence from officers and historical data.
  • Government and international agency reports.
  • Criteria such as country of origin, importer profile, and security concerns.

All this data feeds into our Risk Engine, which determines whether an incoming shipment is high-risk or can be cleared immediately. If flagged as risky, it undergoes further scrutiny by specialized departments, including inspection, legal, audit, and tariff valuation.

Efficiency Gains

Our digital transformation efforts resulted in a major efficiency boost:

  • Every three seconds, a declaration is cleared.
  • Despite handling 10 million declarations in 2019, our workforce only grew from 2,897 to 3,000 employees.

These achievements showcase how technology, collaboration, and agility have enhanced productivity and service delivery.

Agility in Crisis Management

Our agility was put to the test recently when heavy rainfall caused major flight delays at Dubai International Airport. In a traditional setup, decision-making would have been delayed as teams awaited top-down instructions. However, due to our culture of empowerment, frontline staff reallocated resources in real time, ensuring smooth passenger clearance. During peak travel periods, our airport team efficiently handled half a million additional passengers without causing disruptions.

Embracing Emerging Technologies

Agility is also about innovation. Dubai Customs has established an Accelerated Innovation Lab, where business and IT teams collaborate on emerging technologies, including:

  • Blockchain: Cross-border e-commerce trade facilitation.
  • Robotic Process Automation: Automating post-clearance audits.
  • AI Productivity Engine: Accepted by the Executive Council for use across government departments.
  • AI Classifier: Automated tariff classification using image recognition.
  • AI Predictive Risk Engine: Adopted by customs authorities worldwide.

One recent example of agility in action is our Canine Unit Adaptation. Smugglers began hiding illegal items in narrow areas beyond the reach of traditional sniffer dogs. In response, we trained smaller breeds like Cocker Spaniels, allowing for higher detection efficiency and improved security.

Recognition and Excellence

Dubai Customs’ transformation has been recognized globally. The European Foundation for Quality Management (EFQM) awarded us Gold Category status in 2019. Our EFQM ranking improved from 18th place in 2004 to 1st place in 2015, reflecting our commitment to continuous improvement.

Building a Sustainable Agile Model

Upon realizing that our operational culture already embodied agility, we formalized an Agility Framework covering six key areas:

  • Environment
  • Operations
  • Culture
  • Change
  • Performance

We conducted a gap analysis to identify areas for improvement, ensuring a sustainable and scalable approach. Our goal is to provide flexibility within structured boundaries, empowering teams while maintaining governance.

Final Thoughts

Dubai Customs' agility journey demonstrates how digital transformation, empowered decision-making, and continuous innovation create a resilient and efficient organization. Agility is not just about IT—it spans every department, every process, and every stakeholder. Our journey proves that when leadership drives cultural change, agility becomes a core organizational strength.

Thank you very much for your time. I hope you found our story insightful and inspiring.

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