Khalifa Fund signs MoU with Central Bank of the UAE to benefit from direct debit service and enable payments via bank accounts
Khalifa Fund for Enterprise Development (KFED) signed a Memorandum of Understanding (MoU) with the Central Bank of the UAE which will enable the Fund to employ the direct debit system of the Central Bank and receive payment from its’ entrepreneurs directly from their accounts in any bank which operates within the UAE.
The agreement was signed by H.E. Mohammed Ali Bin Zayed Al Falasi, Deputy Governor, Central Bank and H.E. Abdulla Saeed Al Darmaki, CEO of Khalifa Fund of Enterprise Development, in the presence of senior officials from the two parties, on Wednesday (February 13, 2019) at the headquarter of the Central Bank 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, which facilitates in reducing the cost of the project and expedites payment processes, and thereby help startups in the efficient implementation of their projects.
H.E. 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.”
H.E. Mohammed Ali Bin Zayed Al Falasi, said: “The signing of this Memorandum reflects the Central Bank’s continuous efforts to support the UAE’s degital 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.”
H.E. Al Falasi further commended the signing of the MoU with Khalifa Fund, adding that the move will have a positive impact on the shift towards customer-driven digital payment services.
The agreement follows the shared vision of the Central Bank and the Fund in strengthening coordination and cooperation between entities in areas of mutual interest and establish strategic partnership that addresses key areas of concerns. 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. It also outlines the necessary methods to be adopted that will establish the connection between the entrepreneur and the Fund.
The MoU also seeks to establish a system of communication between the parties in the reporting of any problems related to the payment of loans and financial facilities through the direct debit system of the Central Bank.