UAE and Morocco central banks sign payments and Islamic finance accords

By Divya Shah

The Central Bank of the United Arab Emirates (CBUAE) and Bank Al-Maghrib, Morocco’s central bank, have signed two Memoranda of Understanding (MoUs) aimed at strengthening cooperation in banking supervision, Islamic finance, cross-border payments and financial infrastructure.

Under the first MoU, the two central banks agreed to cooperate on regulatory and supervisory matters, including the exchange of information relating to banks and financial institutions. The agreement also covers collaboration on supervisory practices, institutional capacity building and Islamic finance development.

The central banks will work to strengthen coordination between Shariah governance bodies, support the development of cross-border Shariah-compliant financing, and explore opportunities in areas such as trade finance and infrastructure investment.

Signed at the CBUAE headquarters in Abu Dhabi by CBUAE Governor Khaled Mohamed Balama and Bank Al-Maghrib Governor Abdellatif Jouahri, the agreements are intended to enhance bilateral financial cooperation and improve the efficiency of transactions between the two countries.

Khaled Mohamed Balama, Governor of the CBUAE, said, “The signing of the two MoUs with Bank Al-Maghrib reflects our commitment to expanding financial and banking cooperation with the brotherly Kingdom of Morocco, in line with the vision of the UAE’s wise leadership and in support of the mutual interests of both countries.”

He added, “Through this cooperation, we look forward to exchanging supervisory expertise, developing Islamic finance solutions, and exploring opportunities to strengthen links between payment systems, contributing to a more efficient and innovative financial sector and supporting economic and trade relations between the two countries.”

The second MoU focuses on payment system connectivity and financial innovation. Both parties will explore the interlinking of instant payment platforms, national card switches and financial messaging systems to facilitate cross-border transaction processing and settlement. The initiative also seeks to enable mutual acceptance of domestic payment cards, subject to regulatory requirements in both jurisdictions.

In addition, the agreement includes cooperation on retail and wholesale central bank digital currencies (CBDCs), including potential use cases for cross-border payments. The two institutions will also exchange expertise on fintech, virtual asset regulation, crypto-assets, stablecoins and related consumer protection frameworks.

Abdellatif Jouahri, Governor of Bank Al-Maghrib, said the agreements represent an important step in strengthening cooperation between the two institutions across supervision, regulation and Islamic finance.

He added, “This partnership also opens up opportunities to develop cross-border financial transactions and accelerate their processing, and to explore ways to use central bank digital currencies in payments between the two countries, contributing to greater efficiency in financial transactions and stronger cooperation between the two institutions.”