Dubai Economy, a government body, is launching a new sharia-compliant receivables financing programme to offer working capital to private sector businesses working with government agencies in Dubai.
The announcement comes after the entity signed an agreement with Dar Al Tawreeq, a subsidiary of Tawreeq Holdings, which provides sharia-compliant factoring and forfaiting services.
The aim of the new programme is to support private sector suppliers to Dubai government agencies by expediting the processes of supply and payment while at the same time enabling government agencies to benefit from competitive prices for services and procurement.
The software allows suppliers to ensure liquidity by obtaining on-demand financing on their invoices at no additional financial or administrative burden on the parties involved. It is linked with Dubai’s GRP (government resource planning) system.
According to Khalid Al Kassim, assistant director general for executive affairs at Dubai Economy, the partnership with Dar Al Tawreeq is an important step towards promoting business and entrepreneurship. “Innovative solutions that enhance ease of business and ensure sustainability are critical to retaining Dubai’s attractiveness as a business and investment destination,” he says.
Haitham Al Refaie, CEO of Tawreeq Holdings, adds: “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.”