MINISTRY OF FINANCE ANNOUNCES AED 2 BILLION REVENUE FROM E-DIRHAM IN Q1

The Ministry of Finance (MoF) announced that the federal government revenue collected through e-Dirham reached more than AED2 billion in Q1 2016, up 4.2 per cent from AED1.92 billion in Q1 2015.

The number of service transactions done through e-Dirham during the first quarter of 2016 rose 10.7 per cent to yield nearly 10.1 million as compared to 9.1 million transactions during the same period in 2015.

HE Saeed Rashid Al Yateem, Assistant Undersecretary of Resources and Budget Sector, Ministry of Finance, said: “The figures point to the growing popularity of the e-Dirham system. It is now becoming the preferred mode of payment of individuals, corporate houses, and institutions.”

The total payment receipts through the e-Dirham system increased by 24 per cent for the first three months of 2016, nearly 5.1 million receipts in Q1 2016 compared to about 4.1 million receipts in Q1 2015. The number of sold e-Dirham ‘Al Haslah’ prepaid cards reached 2 million by the end of March 2016.

“e-Dirham is the initiative of the federal government in the financial sector. The Ministry of Finance is keen to promote and upgrade the e-Dirham system to fulfil its vision and strategic goals in enhancing the efficiency of the government’s services and collections. e-Dirham helped the digital economy grow and aided the move towards smart governance,” HE Al Yateem added.

“The UAE federal government, ministries and local authorities have been promoting electronic payment gateways. These efforts have shown highly positive results. The total e-collection of the ministries, authorities and federal government entities crossed AED 8.2 billion for 36.14 million government transactions last year,” HE Al Yateem added.

In partnership with the National Bank of Abu Dhabi, the e-Dirham system has been in existence for 15 years now and its second generation (G2) services started in 2011. The e-Dirham user base and number of payment transactions have expanded rapidly over the years. Offerings have included ‘Al Haslah’ prepaid cards, e-wallet, point-of-sale transactions, and e-Dirham self-service kiosks.

This year, MoF has started a media campaign to promote the brand and bring its many advantages to the notice of more potential customers. The campaign raises awareness not only on e-Dirham as a smart and secure substitute for cash, but also on the digitisation of financial transactions for public services.

Saif Ali Al Shehhi, Senior Managing Director, UAE Government and VVIP Clients, National Bank of Abu Dhabi, said: “The figures on e-Dirham usage for the first quarter of 2016 reflect the success of the system, which is being patronised by more clients. That trend is gaining ground day by day because of the system’s convenience, efficiency, and its latest payment technologies. Since the G2 launch, 110 million e-services worth nearly AED24 billion have been transacted through e-Dirham.”

Source: UAE Ministry of Finance