Central Bank to position UAE as a global leader

The Central Bank of the UAE is taking the lead in designing a new regulatory framework that will serve to foster the development of digital payments in the UAE. The aim is to position the UAE as a global leader in digital payments and to facilitate the broad adoption of the system across the Emirates in a secure manner.

In recent years, there have been numerous examples of countries leveraging the advances in technology to accelerate economic development, empowering citizens through enabling digital technology and services will help to drive the overall competitiveness of the UAE economy. Specifically, UAE citizens and residents could benefit from higher quality services, both from the public and private sector, at a lower cost and with greater convenience. From a government and corporate perspective, entities could see reduced transaction costs, greater levels of efficiency, vastly improved collection cycles and more attractive payment terms.

The UAE government's vision is to become a global leader in providing digital services to its citizens and become a knowledge-based, and innovation driven economy. This ambition culminated in the launch of mGov in 2013 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai, to firmly place the country in a position of leadership in this area. As a result, a variety of digital services have become available in the marketplace over the past few years. Future services that may be offered include m-Money, m-Payment, m-Wallet, and e-Dirham.

In its role as the custodian of the banking and payments system, and in light of this important activity, the Central Bank is overseeing how best to enable digital payments within the country in an effective and secure manner. While the main focus will be in ensuring that the UAE is positioned as a global leader in digital payments, there will also be a continued emphasis by the Central Bank on the sound functioning of the banking system, including the country's payment systems.

Through this programme of work, the Central Bank strives to support the overall digital agenda of the UAE. The Central Bank will establish the regulatory framework in-line with the country's national vision and outline the future roadmap for the development of digital payments. To ensure that global best practices are taken into account, the Central Bank has engaged the services of an international consulting firm.

Given the strategic importance of this programme, the Central Bank will consult and collaborate with senior stakeholders, including banking, telecommunications, government, industry and other regulatory agencies to ensure that the best interests of the UAE are taken into account.
Source: WAM