Shariah-compliant program launched to finance suppliers - Saudi Gazette

Shariah-compliant program launched to finance suppliers

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Khalid Al Kassim (left), Assistant Director General for Executive Affairs in Dubai Economy; and Haitham Al Refaie, Tawreeq Holdings Group Chief Executive Officer, at the launch of Shariah-compliant smart program

DUBAI — Dubai Economy, in partnership with Dar Al Tawreeq, a subsidiary of Tawreeq Holdings, has launched a Shariah-compliant smart program to offer receivables finance to suppliers dealing with government entities in Dubai. Dubai Economy is the first government entity to offer such a Shariah-compliant receivable financing option to suppliers.

The program aims to support private sector companies that deal with government agencies by expediting the processes of supply and payment while also enabling government agencies to benefit from competitive prices for services and procurement. Faster payment will support businesses in growing sustainably and maintaining cash flows.

Businesses working with government entities in Dubai can use the smart software developed by Dar Al Tawreeq to ensure liquidity by obtaining financing on their invoices. The program, directly linked to the GRP (Government Resource Planning) system used by the Government of Dubai, also provides easy access to on-demand working capital for businesses at no additional financial or administrative burden on the parties involved.

The program was launched by Khalid Al Kassim, Assistant Director General for Executive Affairs in Dubai Economy; and Haitham Al Refaie, Tawreeq Holdings Group Chief Executive Officer.

"Innovative solutions that enhance ease of business and ensure sustainability are critical to retaining Dubai’s attractiveness as a business and investment destination," said Al Kassim. ” Our partnership with Dar Al Tawreeq is an important step towards promoting business and entrepreneurship in Dubai."

Al Kassim added that the program emphasizes the principle of public-private partnership adopted by Dubai in its sustainable development vision and its evolution into an Islamic Economy Capital.

Haitham Al Refaie said “we are pleased to be working with Dubai Economy to expand the benefits of sustainable financial solutions to businesses across the UAE; our focus is on fostering a cohesive and collaborative business ecosystem through promoting sharia-compliant and efficient financial solutions, utilizing technology and financial expertise for swift access to working capital liquidity”.

The program allows suppliers to obtain on-demand working capital on a non-recourse basis, and also to benefit from swift registration and transactions through the Smart Platform linked to the Dubai Financial Management System. — SG


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