The agreement was signed by Mohammed Ali Bin Zayed Al Falasi, Deputy Governor of the UAE Central Bank and Abdulla Saeed Al Darmaki, CEO of Khalifa Fund of Enterprise Development, in the presence of senior officials from the two parties, on Wednesday at the Central Bank's headquarters in Abu Dhabi.
The agreement allows the fund to deduct the amount of payment due from the entrepreneurs on a monthly basis from their bank accounts upon their approval and on the date determined by the parties. This will enhance the financing relationship between the project owner and the fund, reduces the cost of the project and expedites payment processes, and thereby helps start-ups to efficiently implement their projects.
Commenting on the announcement, Al Darmaki said, "Khalifa Fund continues to enhance its cooperation with various local and federal entities within the UAE further to the expansion of our activities at the regional and global level and gaining attention as an ideal model for supporting small and medium enterprises, SMEs. The agreement is in line with the fund’s efforts to make a significant contribution to sustainable social development and the growth of the national economy by establishing a culture of entrepreneurship and improving the means for the Emirati youth to take part in entrepreneurship that will serve the society and the economy.
"This agreement also highlights the importance of partnership between various government entities in Abu Dhabi and the UAE to achieve common efforts that further develop entrepreneurship and support young people in building a brighter future. We seek to enable our young people to tap their creativity and ability to innovate in order to flourish and achieve their dreams, in line with the vision of our wise leadership to provide the best for its people and the nation," he added.
Al Falasi, explained, "The signing of this MoU reflects the Central Bank's continuous efforts to support the UAE’s digital transformation strategy through the electronic services provided by federal and local entities in line with the vision of the UAE’s wise leadership."
He added, "The direct debit system managed by the Central Bank since 2013 serves an important link between the fund, which finances the project and the banks in the country, thus making it easy to deduct the value owed by the client as it can be done electronically and without the need for any additional documents."
Al Falasi further commended the signing of the MoU with the Khalifa Fund, adding that the move will have a positive impact on the shift towards customer-driven digital payment services.
The agreement provides a detailed plan of action, including the identification of common challenges and the solutions that may be faced in the course of the implementation of Electronic Payment Systems.