To enhance cooperation in developing the UAE’s capital markets, the Central Bank of the UAE (CBUAE) and Dubai’s Department of Finance recently signed an MoU (Memorandum of Understanding).
To support growth and innovative solutions in the financial sector, the MoU will use advanced financial infrastructure. This MoU also include the issuance of dirham-denominated government bonds, with the Central Bank infrastructure. This complements the ongoing efforts of the Dubai government to expand the capital market and diversify investment tools.
Both parties, CBUAE and Dubai’s Department of Finance, will also work together on financial technology, payment systems, and the development of a digital currency platform. This initiative will encourage capacity-building through the sharing of expertise and training programmes. Experts suggest that this will promote financial inclusion and innovation.
“This MoU represents an important step toward advancing the country’s financial markets, supporting their growth, and ensuring their readiness to adapt to future changes,” said Khaled Mohamed Balama, Governor of the Central Bank of the UAE.
The senior official also added that “In light of the rapid transformations in global financial markets, we are working under the vision and guidance of our wise leadership to promote innovation, accelerate the digitisation of financial services and technology, and strengthen effective cooperation and partnerships with federal and local entities. These are key pillars for driving the growth of capital markets and the financial sector, enhancing the investment environment in the country, and contributing to the achievement of comprehensive and sustainable development goals.”
Abdulrahman Saleh Al Saleh, Director-General of Dubai’s Department of Finance, stated that there is an absolute need for cooperation between financial regulators for growth.
“This MoU represents a significant step to solidify our strategic partnership with the Central Bank to diversify investment instruments and develop capital markets in accordance with the vision of our wise leadership. We will continue to share expertise, explore new solutions to keep up with international advances in financial markets and services, and expand national capabilities to support long-term economic progress,” Saleh Al Saleh concluded.