DFM signs MoU with the Department of Finance to streamline payments of IPO subscription via Portal of Dubai Smart Government

Sunday 01 November 2015

Dubai - MENA Herald: Dubai Financial Market (DFM) today announced it has signed a Memorandum of Understanding (MoU) with the Government of Dubai’s Department of Finance (DoF), which will enable investors to make payments of IPO subscriptions in the future via the ePay Portal of Dubai Smart Government. The agreement underlines DFM’s commitment to collaborate with various organizations in order to provide market participants with smart and cutting-edge services in line with the vision and directions of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai.

This step will further boost the success of DFM’s “eIPO” platform, the sophisticated and efficient solution for IPO subscription directly linked with the receiving banks. The platform has witnessed enormous turnout from investors in the UAE and beyond during the implementation of many IPOs including Marka, Emaar Malls Group, Amanat and Dubai Parks & Resorts.

Hassan Al Serkal, Chief Operating Officer, DFM and Jamal Hamed Al Marri, Executive Director of Central Accounts, DoF have signed the MoU as part of DFM’s participation in GITEX 2015, in the presence of senior representatives from both sides.

The agreement enables payment of IPO subscriptions through the Dubai Smart Government’s ePay Portal, by instantly debiting from customers’ account with seven member banks including; Dubai Islamic Bank, Emirates Islamic Bank, Emirates NBD, Commercial Bank of Dubai, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Union National Bank. Mashreq Bank will join the portal in the near future.

Commenting on this, Ali Al Hashimi, Head of Financial Services Division, DFM said: “We would like to extend our thanks to DoF, for collaborating with us to achieve this step. It will further contribute to the success story of the “eIPO” platform by enabling investors to instantly pay for their IPO subscription by debiting their bank accounts. The immediate settlement provides the necessary flexibility for such transactions noting that subscription period are always limited based on the commercial companies law in the UAE hence the prompt settlement is highly important.”

Jamal Hamed Al Marri, Executive Director of Central Accounts at DoF, said: “We are delighted to sign with DFM this MoU. Facilitating the future IPO subscriptions payments for investors through the e-Pay, both inside and outside the country, is a big achievement that contributes to enhance the image of the investment scene in Dubai. In line with Dubai Strategy 2021, this step will launch a strategic partnership between DFM and DoF, in order to contribute to the digital transformation in Dubai at the highest possible level".

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