A Memorandum of Understanding (MoU) has been signed with the Government of Dubai’s Department of Finance (DoF) and Dubai Islamic Bank (DIB), to streamline payments of initial public offering (IPO) subscriptions, the Dubai Financial Market (DFM) announced today.

According to the MoU, DIB has become the first bank to enable investors who participate in IPOs and Rights Issues implemented through DFM’s "eIPO" platform, to subscribe by directly debiting their accounts as well as receiving the excess amounts.

The MoU underlined DFM’s commitment to collaborate with various institutions in order to provide market participants with smart and cutting-edge services in line with the vision and directions of Vice President, Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum.

Hassan Al Serkal, Chief Operating Officer, DFM, Jamal Hamed Al Marri, Executive Director of Central Accounts, DoF and Musabbah Mohammed Al Qaizi, Head of Electronic Banking Services and IT, DIB signed the MoU.

This will further boost the success of DFM’s "eIPO" platform, the sophisticated and efficient solution for IPO subscription directly linked with the receiving banks. Through the Dubai Government’s ePay Portal, subscribers can participate in IPOs by instantly debiting from the customer’s bank account.

"It will further contribute to the success story of the "eIPO" platform by enabling investors to instantly pay for their IPO subscription by debiting their bank accounts. As DIB joins forces with this collaborative efforts that has been agreed on between DFM and the DoF last year, excess amounts of IPO subscriptions will be refunded directly to investors accounts. This joint effort stems from the mutual commitment to further strengthen Dubai’s leading position in terms of smart services globally," said Ali Al Hashimi, Head of Financial Services Division, DFM.

Jamal Hamed Al Marri, Executive Director of Central Accounts at DoF, said, "We are delighted to sign with DFM this MoU. Facilitating future IPO subscription payments for investors through ePay, both inside and outside the country, is a big achievement that contributes to enhancing the image of the investment landscape in Dubai. In line with the Dubai Strategy 2021, this step will launch a strategic partnership between DFM and DoF, in order to contribute to the digital transformation in Dubai at the highest possible level."

Musabbah Mohammed Al Qaizi, Head of Electronic Banking Services and IT at Dubai Islamic Bank, said, "The eIPO platform is perfectly aligned with our Smart Bank initiative, launched to enhance our customer service and support Dubai’s Smart City agenda, and will further our position as one of the most progressive Islamic finance institutions worldwide. Looking ahead, we will continue to not only innovate our banking services for customers, but also closely support Dubai in its mission to become one of the smartest cities in the world.