With the coming digital transformation era, it is the perfect time to embark upon decluttering your counter and shifting towards a paperless approach. It is high time to apprehend how we can possibly reduce the use of cheques and build a fully-fledged paperless ecosystem. Apparently, we are not alone in this long journey, as Dubai’s paperless strategy is going to make it a paperless emirate. As per the records, Dubai recently introduced an initiative that allows tenants to make online rent payments directly through their bank accounts without any need to issue cheques.
Perhaps, this is not the sole goal of this incredible initiative. The implementation of the undertaking also plays a crucial role in promoting Dubai’s 10X vision. This out-of-the-box approach sought to levitate disruptive innovation in the country by bringing in ways to capitalize on new technologies to deliver the best newer or existing services. This is done in a way that the integrated services are favourable to the customers and are highly intuitive and design based. This process provides an exponential change to governmental institutions, with its goal of aligning disruptive innovation rather than incremental innovation, by completely disrupting the current technologies to develop operating models that are ready for the future.
The new initiative has been formulated due to a partnership between Dubai Land Department and Emirates NBD. With this approach, the government allows rental cheques to be directly automated and digitized by the UAEDDS or UAE Central Bank’s Direct Debit System. Also, this brings forth an opportunity for Non-residents looking for purchasing estates in Dubai to open their savings accounts through the Emirates NBD, along with documenting purchases and rental collection from the bank. Whether cutting off traditional payment methods like issuing post-dated cheques or introducing new dynamics in Dubai’s automated property management, this new development is truly a milestone.
How will the new system work?
Unlike the previous methodologies, the landlord will obtain certified direct debit directives from tenants in place of cheques. The tenant would now have to speak with Emirates NBD to register for the service. The registration for UAEDDS service can be made with any bank provider (the system exclusively applies to Emirates NBD customers). Landlords can sign up for this service using their Emirates NBD account for end-to-end direct debit service. Tenants can have credit cards or accounts aligned with any UAE bank.
Is it mandatory to follow the new system?
According to the new reforms, the UAEDDS can run parallel to the existing system, which is presently used by tenants and landlords. Provided the recent initiative is not compulsory, this initialises an automatic, simple, and trustworthy alternative regarding checks. It can undeniably be said that this initiative is significant in transforming Dubai into a hassle-free, paperless and quick system that does not involve rental cheques for conducting businesses.
Following the successful alternative discussed in the pretext, it provides tenants with a simple online option for paying the rent with their bank accounts diving into a seamless, paperless arena. With this, tenants can take advantage of their landlords’ or property management firms’ extended payment arrangements. These partnerships between Emirates NBD and Dubai’s Land department will use progressive technologies to replace outdated systems. Thus, providing aid in simplifying and optimizing the processes of the real estate industry and paving the way for the future by Dubai-placing it 10 years ahead of the top leading global cities worldwide.