In a significant move to bolster the nation’s financial landscape, the Central Bank of the UAE (CBUAE) and the Dubai Finance Department have signed a Memorandum of Understanding (MoU) aimed at developing the country’s capital markets. The partnership will leverage the CBUAE’s advanced financial infrastructure to foster growth and innovation within the sector.
Strengthening Financial Infrastructure
Under the terms of the MoU, the Dubai Finance Department will utilize the CBUAE’s infrastructure to issue dirham-denominated government bonds. This initiative is a crucial step in deepening the local capital market, providing new investment tools, and enhancing liquidity. The collaboration aims to create a more robust and sophisticated financial environment, supporting the UAE’s long-term economic diversification goals. The agreement was signed by H.E. Khaled Mohamed Balama, Governor of the CBUAE, and H.E. Abdulrahman Saleh Al Saleh, Director General of the Dubai Finance Department.
A Push For FinTech and Digital Currency
The partnership extends beyond traditional capital markets, with a strong focus on future-facing financial technologies. Both entities will collaborate on advancing FinTech, modernizing payment systems, and developing a Central Bank Digital Currency (CBDC) platform. These efforts are designed to support innovative financial services and promote greater financial inclusion across the country. The MoU also outlines plans for capacity-building through joint training programs and the exchange of expertise between the two organizations.
A Strategic Vision For Economic Growth
H.E. Khaled Mohamed Balama highlighted the MoU’s importance in adapting to global financial shifts. “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,” he stated. He emphasized that promoting innovation and accelerating the digitization of financial services are key pillars for driving the growth of capital markets and enhancing the UAE’s investment environment.
Echoing this sentiment, H.E. Abdulrahman Saleh Al Saleh noted the significance of the collaboration. “This MoU marks a pivotal step in strengthening our strategic partnership with the Central Bank to diversify investment tools and develop capital markets in line with the vision of our wise leadership,” he said. “We are committed to exchanging best practices, developing innovative solutions that keep pace with global developments in financial markets and services, and enhancing national capabilities for a sustainable economic future.”
About The Central Bank of the UAE
The Central Bank of the UAE is the primary regulatory body of the banking and financial system in the United Arab Emirates. Its mandate is to ensure monetary and financial stability, manage foreign reserves, and promote a sound financial system to support the country’s economic growth.
About The Dubai Finance Department
The Dubai Finance Department is the government body responsible for managing the public funds of the Emirate of Dubai. It plays a central role in developing the Emirate’s annual budget, supervising government accounts, and formulating fiscal policies that support Dubai’s sustainable economic development and strategic objectives.
Source: Zawya
