The UAE expanded payment flexibility as the Ministry of Finance introduced a new instalment option for federal fees and fines. This step offers a modern payment structure and advances the country’s digital financial landscape.
On Tuesday in Dubai, the Ministry confirmed the launch after forming a strategic partnership with Tabby. Through this agreement, customers can spread federal government payments across several months. As a result, households and businesses gain greater payment flexibility during periods of rising financial pressure. The collaboration also marks the first cooperation of its kind between the Ministry and the fintech firm.
Under the new model, Tabby settles the full amount with the relevant federal entity at the moment of payment. Customers then repay Tabby through structured instalments that suit their budgets. Moreover, the Ministry noted that the service applies across all federal government bodies. The move also aligns with ongoing efforts to expand digital service delivery.
Officials stated that the initiative developed after strong demand for alternative payment options. Many residents want better control over financial obligations. Furthermore, high living costs continue to influence consumer behaviour. The Ministry therefore aims to introduce tools that offer added convenience. This partnership supports that mission and accelerates digital transformation.
The agreement also contributes to the UAE’s broader financial innovation agenda. The government intends to adopt more technology-driven solutions and minimise administrative delays. Additionally, the project reflects the region’s shift toward Buy Now, Pay Later platforms. These platforms have grown consistently over the last three years and show strong user acceptance.
Tabby leaders said the partnership builds on the company’s growing UAE footprint. They also highlighted increased adoption among younger customers and small businesses. Consequently, the government expects the instalment feature to appeal to users who favour simple and efficient digital interactions.
The Ministry also clarified that the service includes competitive commission rates. Customers pay these fees only if they choose the instalment option. This structure ensures transparency and avoids unnecessary charges for users who prefer traditional settlement methods.
Industry analysts believe the collaboration could inspire more fintech partnerships with public institutions. Several regional governments are now examining similar solutions. Therefore, the UAE continues to position itself as a leader in digital payment reform. The initiative encourages innovation and strengthens cooperation with the private sector.
Looking ahead, the Ministry expects wider adoption as more federal entities complete technical onboarding. It also plans to monitor user feedback and refine the service when needed. This approach aims to enhance digital engagement and ensure long-term satisfaction.
The UAE continues to modernise government transactions and expand tools that reflect resident needs. Consequently, the new model boosts payment flexibility and supports national goals for digital advancement.
