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First of its kind in the Middle East:
Innovative Supplier Payment Solution will benefit 9,000 Government of Dubai suppliers
Dubai, 18 April 2015: The Government of Dubai and Citi today launched an innovative two-fold supplier payment mechanism as part of the Smart Finance Solution, providing the Government of Dubai with the ability to unlock liquidity and pay suppliers almost immediately.
The two-part solution offers a Citi Corporate Purchasing Card (CPC) backed by VISA® and a Supply Chain Finance (SCF) working capital management solution. An expected 9,000 local suppliers, mostly small and medium businesses (SMEs), will benefit from the programme through a master merchant solution offered by Network International & Invapay, a UK based payment processing company.
Mr. Khalid Al Kassim, Deputy Director General for Economic Affairs, and Director of Dubai Competitiveness Office which oversees the project, said: "Suppliers are an extension of our business, while building the ecosystem for the private sector is a major focus for us. Therefore, this pioneering initiative by the Dubai Competitiveness Office falls within our efforts to enhance UAE's and Dubai's comptetiveness metrics such as government transactional efficiency, level of support for the SMEs, and perpetuity of supplier cash flow."
"The top leadership's pursuit of excellence in all fields regionally and internationally gives us the motivation to work harder to stay in the lead. We're proud to collaborate with the Department of Finance and Citi in developing the Smart Finance Solution, which will be followed by other initiatives all aiming at enhancing the competitiveness position of Dubai as well as the UAE."
"This comprehensive payment solution will help transform the way we pay our suppliers and will play a significant role in offering SMEs improved efficiency and access to liquidity,'' said Jamal Hamed Al Marri, Executive Director Central Accounts, the Department of Finance (DOF). "We are proud to build on the momentum of the ongoing efforts in the region to support local businesses and facilitate their growth. We perceive this project as a vital driving force behind the economic development of the emirate."
Citi's involvement in this programme is driven by 'Citi for Cities,' a global initiative, which aims at transforming and modernizing city infrastructure, supporting economic development and job creation, and enhancing cities' livability.
Citi's purchasing card and Supply Chain Finance Solution offer a highly customized structure that will cater to the Government of Dubai supplier segment, especially home grown SMEs. The custom-made solution will facilitate access to liquidity across businesses of all sizes and provide a unique platform for businesses to unlock the full potential of the Smart Finance Solution.
" We are very focused on the 150 cities around the world that we believe will shape the future of the global economy in years to come and Dubai is an integral part of this strategy,,'' said Atiq Ur Rehman, Citi's Chief Executive Officer for the Middle East and North Africa.
DED is one of the pilot entities to pioneer the innovative supplier's payment solution. The testing of the solution will start with cards programme and eventually expanded to Supplier Chain Finance, with other Government of Dubai entities.
-Ends-
About Department of Economic Development (DED):
The Department of Economic Development (DED) is the government body entrusted to set and drive the economic agenda of the emirate of Dubai, UAE. DED supports the structural transformation of Dubai into a diversified, innovative, service-based economy that aims to improve the business environment and accelerate productivity growth.
DED and its agencies develop economic plans and policies, identify and support the growth of strategic sectors, and provide services to domestic and international investors and businesses.
For further information, please contact:
Faisal Shamsudheen
Marketing & Communication Department
Department of Economic Development
Tel: (971 4) 361 3070
Email: faisal.pathiasseri@dubaided.gov.ae
About Department of Finance (DOF)
Under the guidance of His Highness Sheikh Mohamed Bin Rashid Al Maktoum, Vice President and Prime
Minister of the UAE and Ruler of Dubai, and in line with Law no. (5), the Department of Finance, Government of Dubai, was established in 1995.
The mandate of the Department of Finance is to supervise all financial and accounting affairs of the emirate, in addition to issuing consolidated financial statements for the Emirate.
The Department of Finance is responsible for the development of the emirate's general annual budget and its execution in cooperation with all relevant local government departments. Furthermore, the Department of Finance provides liquidity, including transferring sanctioned budgetary allocations to all relevant government departments. It also oversees the preparation and development of tolls, dues and other resources. In addition, the Department of Finance verifies the collection of taxes and the provision of general revenues, while also supervising government banking accounts.
For further information, please contact:
Jehad Kamal
Relations and Communication Manager
Department of Finance
Tel: (971 4) 405 6079
Email: jkamal@dof.gov.ae
About Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: new.citi.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi
For further information, please contact:
Tara Sirinyan
Corporate Communications
Citi
Tel: (971 4) 5099570
Email: tara.sirinyan@citi.com
© Press Release 2015
