The UAE’s Ministry of Finance (MoF) has announced the completion of phase one of the transformation of the e-Dirham system, in cooperation with relevant ministries and national banks across the UAE.

The move reiterates MoF’s efforts to bolster e-Dirham in accordance with the highest international standards for Fintech and digital payments for government services fees, reported state-run news agency Wam.

The e-Dirham system provides multiple banking services to issue bank cards and digital payment and acquisition solutions for clearing and financial settlements.

The first phase of the transformation of the e-Dirham 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.

Younis Haji Al Khoori, Undersecretary of MoF, reiterated the importance of completing the first phase of the e-Dirham system, as well as its role in strengthening the partnership between the public and private sectors, through cooperation with national banks. The new payment method ensures financial flow for federal government service fees and financial settlements are flexible and sustainable, in accordance with the UAE Vision 2021.

He 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."

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. This system represents global best practices in Fintech and digital payments. It is also a major contributors to the digital transformation in the country. This in turn will enhance the UAE’s standing regionally and globally in the areas of smart governance, as well as a strong knowledge-based, digital economy. All of the aforementioned are in line with the wise leadership’s directives and the objectives of the UAE Vision 2021.

He mentioned that the Ministry of Economy was one of the first federal entities to apply the new e-Dirham system, which facilitated customer experience and enhanced the ministry’s services.

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. It will also 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.

Sharif Salim Al Olama, the Undersecretary of the Ministry of Energy and Industry, MOEI, said: "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."

By accelerating the transformation of the e-Dirham, MoF will enhance customer experience, while harmonising trade balance between relevant entities, thereby improving, providing and implementing solutions and digital payment tools. MoF also 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.