The principal economics agency of the Dubai government has launched a groundbreaking scheme to provide sharia-compliant receivables finance to private-sector suppliers.
Its aim is to support those firms in their dealings with clients in the public sector.
Created by Dubai Economy – in partnership with factoring and forfaiting firm Dar Al Tawreeq – the scheme will reside on a cutting-edge, smart-software platform powered by the Dubai Financial Management System.
Via that network, suppliers will be able to obtain quick streams of finance on their invoices throughout their work for government bodies, guaranteeing liquidity for the duration of their contracts.
In addition to expediting supply and payment processes for the service providers, the scheme will also benefit the government clients – giving them access to competitive pricing for services and procurement.
The programme is linked directly to Dubai’s government resource-planning network.
On-demand working capital will be provided on a non-recourse basis, and the smart platform makes the registration and transactions processes swift.
Dubai Economy assistant director general for executive affairs Khalid Al Kassim pointed out that the programme embodies the public-private partnership ethos that Dubai has adopted to drive its sustainable development vision.
That vision underpins Dubai’s ambition to evolve into an Islamic Economy Capital.
Kassim said: “Innovative solutions that enhance ease of business and ensure sustainability are critical to retaining Dubai’s attractiveness as a business and investment destination.
He added: “Our partnership with Dar Al Tawreeq is an important step towards promoting business and entrepreneurship in Dubai.”
Haitham Al Refaie – group CEO of Dar Al Tawreeq’s parent company Tawreeq Holdings – added: “We are pleased to be working with Dubai Economy to expand the benefits of sustainable financial solutions to businesses across the UAE.
“Our focus is on fostering a cohesive and collaborative business ecosystem through promoting sharia-compliant and efficient financial solutions – utilising technology and financial expertise for swift access to working-capital liquidity.”
Find out more about Dubai’s sustainable development vision here