Emirates ID as a Financial Tool

ID cards in the UAE

The United Arab Emirates biometric national ID card, the Emirates ID, is moving into its next stage. The Emirates Identity Authority has teamed up with Al Hilal Bank to run a trial of monetizing the card.  

As we have seen in other countries, such as Nigeria, The government wants to keep tight control on the flow of cash in the country. As long as people are able to exchange currency, it is still possible to engage in commerce without the control or knowledge of the government. Many countries are now looking to close this gap in their control by going to a cashless society. While they talk about the ease and security of a cashless system, their real goal is to monitor and control all commerce. When they are cashless, no one will buy or sell without their biometric card. Someday soon it will be a mark on the right hand or forehead.

ID card to spur financial inclusion in UAE

Enabling the national ID card issued by the Emirates Identity Authority as a tool to withdraw cash and make payments will not only offer convenience to UAE residents, it will also spur financial inclusion in the country, a top official said yesterday.

The Arab states, including the UAE, are home to a significant number of unbanked residents. As of 2011, only a small proportion, 18 per cent, of the population in the Middle East and North Africa were using financial services. In the UAE, the majority, or 60 per cent, did not have a bank account.

The Emirates Identity Authority has recently tied up with Al Hilal Bank to test the capability of the national ID card as a financial tool. Dr Ali Al Khouri, director general of the Emirates Identity Authority, said several other banks in the UAE have also expressed interest in rolling out the service to their customers.

He said the scheme will definitely encourage low-income residents, especially the unbanked blue-collar workers in the country to use the financial services. He also sees the national ID being linked to the Wages Protection System (WPS), a digital salary transfer system that allows the payment of workers’ salaries through banks or exchange bureaus.

It is not clear when every legal resident in the UAE will eventually use their ID card for ATM and retail transactions, but Al Khouri said the wide adoption of the technology will largely depend on the banks. To enable banking customers to use their ID card for withdrawals, banks need to replace or upgrade their ATM machines.

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