UAE’s MoF completes phase 1 of the e-Dirham system transformation

By Edil Corneille

UAE’s Ministry of Finance (MoF) has completed phase one of the transformation of the e-Dirham system. This transpired in cooperation with relevant ministries and national banks across the UAE. The e-Dirham system provides multiple banking services to issue bank cards and digital payment and acquisition solutions for clearing and financial settlements.

The move is the MoF’s effort to bolster e-Dirham in accordance with the highest international standards for FinTech and digital payments for government services fees. The first phase of the transformation of the system included the Ministry of Economy, the Ministry of Energy and Industry, and several national banks. Expansion is underway to include additional federal government entities and national banks.

H.E. Younis Haji Al Khoori, Undersecretary of MoF said, “The Ministry of Finance has taken several steps to support the transition to a digital economy, of which e-Dirham is one of its biggest achievements. We will continue to improve the system and enhance digital payment options, in a manner that improves customer satisfaction, and enables them to transact easily and securely.”

The payment method ensures financial flow for federal government service fees. Financial settlements are said to be flexible and sustainable in accordance with the UAE Vision 2021.

H.E. Engineer Mohammed Al Shehhi, Undersecretary of Economic Affairs in the Ministry of Economy said that implementing the first phase of the future transformation of the e-Dirham system is key to improving the services of the federal government in the UAE. He added that the Ministry of Economy was one of the first federal entities to apply the new e-Dirham system.

H.E. Al Shehhi said that the step will bolster the national knowledge database, which will serve the UAE’s efforts in economic planning, public financial management, financial and statistical analyses, and digital business models. He mentioned that the step will create new skills nation-wide in management, digital financial governance, standards of information security systems and database protection – all of which are critical to achieving the long-term goals of the UAE Centennial 2071.

H.E. Engineer Sharif Salim Al Olama, the Undersecretary of the Ministry of Energy and Industry (MOEI) enthused, “We are pleased at the MOEI to use the third-generation of the e-Dirham in order to facilitate procedures of collecting fees of industrial, geological and dam-related services. E-Dirham is an innovative, secure and effective system that enables sustainable development.”

The system is expected to enhance customer experience while harmonising trade balance between relevant entities. This will lead to the improvement of digital payment solutions. MoF aims to refine government services by creating national databases for planning, research, studies, analysis, financial and statistical forecasts, and rationalising the innovation of digital business models.