Residents of the UAE will soon be able to use a ‘mobile wallet', thanks to a project from the UAE Banks Federation.

The Mobile Wallet project has been developed to form the main financial component of the Smart Government initiative announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai in May 2013. The wallet will reside on mobile devices, and will enable money transfer and payments.

The banking federation, which includes the leading banks in the UAE, working co-operation with the UAE Central Bank, has now appointed an external consultant to design the blueprint for the implementation of the Mobile Wallet.

The framework for the roll out of the project, which is expected to take 12 months to complete, will be published after the design phase that will be concluded in March.

Banks involved in the UAE Banks Federation Committee include Abu Dhabi Islamic Bank ( ADIB ), Emirates National Bank of Dubai , First Gulf Bank , National Bank of Abu Dhabi , Abu Dhabi Commercial Bank , Commercial Bank of Dubai , Standard Chartered Bank , Mashreq , and Dubai Islamic Bank .

AbdulAziz Al Ghurair, Chairman of the UAE Banks Federation, said: "We are very excited about the prospects for this highly significant project, which will revolutionise the lives of those who live in the UAE, and also have a significant impact on visitors to the country, subsequently, as we progress with this initiative.

"It puts the UAE ahead of the world by applying across the retail and commercial banking sector a solution that brings state of the art capabilities together with a vision for a modern and progressive nation. We will be seen as a model for others to follow."

Tirad Al Mahmoud, CEO of ADIB , added: "The challenge that we were set to demonstrate how UAE banks can step up to make their contribution to the vision for the UAE's future. The Mobile Wallet does just that, and I think it will be clear to all who use the solution now being created, and which will be presented in greater detail once the blueprint is published by the end of March, that this is a country that has the means and the appetite to lead the world with such advanced and collaborative thinking."