MoF, Dunia sign bank guarantee pact
Dubai, June 23, 2009
The UAE Ministry of Finance has signed an agreement with Dunia Finance to perform bank guarantee e-registration service electronically for the Ministry of Labor and Social Affairs through the e-dirham system.
Faisal Ali Al-Mansouri, Revenue administration director in the Ministry of Finance, and Rajeev Kakar, executive director and CEO of Dunia Finance signed the agreement, which allows Dunia to receive refundable financial guarantees from institutions.
"It is part of a plan by the Ministry of Finance to expand the existing base of guarantee e-registration service electronically, as this service eases the procedures that customers at the Ministry of Labour have to undergo when processing employee visas," noted Faisal Ali Al-Mansouri said.
"This is a good example of public and private sectors partnerships designed to smoothen processes and maximize productivity," he added.
Kakar said the agreement is part of its ambitious strategy plans to diversify services that currently span personal loans, credit cards, auto loans, corporate deposits and products for protection needs and expand them to meet even wider needs of individuals, institutions and customers.”
"We are working with the Ministry of Finance, various federal government and local agencies that are actively contributing to UAE’s economy and keeping pace with the requirements of this significant growth by offering sophisticated financial services that reach out to all segments of society."
"This recent addition in our portfolio is of interest to both local and expatriate citizens," he added.
Faisal Al Mansouri explained that to perform the bank guarantee e- registration service, the guarantee registration letter is issued by banks, so that rights of workers are ensured, to the value of the guarantee between the customer and a bank registered with the UAE government’s e-Dirham system.
He also pointed out that this is in line with Federal Government strategy to promote the electronic payment of fees for the federal government, and the creation of modern methods for the registration letters of guarantee, issued by banks in UAE for the labor Ministry.
This is designed to guarantee the rights of workers, in accordance with the provisions of the Federal Law No. (14) for the year 1999. The ministry plans to organise labor relations in line with this law, also applying the decision of the distinguished Council of Ministers No. (14) /2001 and amended decisions about bank guarantees.
Mansouri poined out that the Department of Revenue in the Ministry of Finance is currently working according to a master plan to develop and update the e-Dirham system, and expand its customer base.
These updates include: developing the website, ATMs, an answering machine service, as well as updating and developing several other services provided by the e-dirham system, and marketing this system to leading UAE-based companies.-TradeArabia News Service
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