Dubai: Payment of rent by check replaced by payment by credit card

Rent payments by credit card soon available

Soon, tenants will be able to take advantage of flexible payment plans from property owners…

Rent payments by credit card soon available

On July 04, 2022, a new partnership between the Dubai Land Department (DLD) and local bank Emirates NBD was born: rent payments by check 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 have the option of making their annual rent payments through their bank accounts instead of writing post-dated checks.

This new solution will benefit both landlords and property management companies – who will no longer have to manage tenant checks – and tenants, who will be able to benefit from flexible payment plans.

Dubai 10X Initiative

This is part of the Dubai government’s digital payments project and the Dubai 10X initiative, which aims to eliminate the use of approximately one billion sheets of paper in transactions each year.
It is also the Covid-19 crisis that has accelerated the trend to digital payments in the Middle East.

Opening a bank account in Dubai for non-residents

The new feature also applies to individual foreign investors wishing to buy a property in Dubai. They can now open non-resident savings accounts with Emirates NBD, and manage the purchase and rent through them. If we refer to the 50 project, we realize that Dubai is entering a dynamic of attracting foreign investments to mitigate the disturbances caused by the global crisis of Covid.

Dubai Land Department and Emirates NBD Agreement

His Excellency Sultan Butti bin Mejren, CEO of DLD, said, “The UAE real estate sector is one of the best and most competitive in the world, and as part of our mission to present a regulatory environment that serves tenants and landlords, we have partnered 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 machinations on the way to replacing the legacy systems in place.

Hesham Abdulla Al Qassim, vice president and general manager of Emirates NBD, said, “Emirates NBD is delighted to partner with the Dubai Land Department on these strategic initiatives that will provide landlords and tenants with an easier and automated rent collection and management system, as well as make it easier for new non-resident investors to purchase properties.”

The partnership with Emirates NBD will therefore automate financial transactions in the real estate sector, offer more flexibility to tenants and facilitate property management for local and foreign owners.