Dubai: Rent payments by cheque replaced by bank card payments

Soon, tenants will be able to benefit from flexible payment plans offered by property owners...

Rent payments by card soon available

On July 4, 2022, a new partnership between the Dubai Land Department (DLD) and local bank Emirates NBD was established: rent payments by cheque will soon be automated and digitized through the UAE Central Bank's direct debit system (UAEDDS). In other words, this means that tenants will soon be able to make their annual rent payments through their bank accounts instead of issuing post-dated cheques. This new solution will benefit both landlords and property management companies - which will no longer have to manage tenants' cheques - and tenants, who will be able to benefit from flexible payment plans.

Dubai 10X Initiative

This new development is part of the Dubai government's digital payments project, as well as the Dubai 10X initiative, which aims to eliminate the use of approximately one billion sheets of paper in transactions each year. The Covid-19 crisis also accelerated the trend toward digital payments in the Middle East.

Opening a bank account in Dubai for non-residents

The new development also concerns foreign individual investors wishing to purchase property in Dubai. They can now open non-resident savings accounts with Emirates NBD and manage their purchase and rent payments through them. Referring to the 50 Projects, it becomes clear that Dubai is pursuing a strategy of attracting foreign investment to offset the disruptions caused by the global Covid crisis. Suggested reading: The 50 Projects

Agreement between the Dubai Land Department and Emirates NBD

His Excellency Sultan Butti bin Mejren, Director General of the DLD, said: "The real estate sector in the United Arab Emirates is one of the best and most competitive in the world, and as part of our mission to provide a regulatory environment serving tenants and landlords, we have established a partnership with Emirates NBD as part of our efforts to fully digitize our services in line with Dubai's paperless strategy. Such collaborations will facilitate and streamline the processes involved in the real estate market by employing progressive mechanisms to replace the legacy systems currently in place." Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD, said: "Emirates NBD is delighted to partner with the Dubai Land Department as part of these strategic initiatives, which will provide landlords and tenants with an easier and automated rent collection and management system, while also facilitating property purchases by new non-resident investors." This partnership with Emirates NBD will therefore automate financial transactions in the real estate sector, offer tenants greater flexibility, and facilitate property management for local and foreign landlords.