CBUAE and Morocco Strengthen Financial Cooperation
The Central Bank of the UAE (CBUAE) and Bank Al-Maghrib have signed two Memoranda of Understanding (MoUs) to deepen financial cooperation between the UAE and Morocco.
The agreements cover banking supervision, Islamic finance, payment systems and financial messaging. Moreover, they aim to improve the efficiency of cross-border financial transactions between the two countries.
CBUAE Governor Khaled Mohamed Balama and Bank Al-Maghrib Governor Abdellatif Jouahri signed the agreements at the CBUAE headquarters in Abu Dhabi.
Stronger Banking and Islamic Finance Cooperation
The first MoU focuses on regulatory and supervisory cooperation between the two central banks. In particular, both institutions will exchange supervisory information covering banks and financial institutions.
They will also coordinate supervisory practices and regulatory approaches. Furthermore, the agreement supports the exchange of expertise and the building of institutional capacity.
Islamic finance represents another major area of cooperation. The central banks will strengthen coordination among Shariah governance bodies overseeing Islamic banking. They will also explore cross-border Shariah-compliant financing opportunities.
These opportunities include trade finance and infrastructure investment. Consequently, the agreement could support greater cooperation between financial institutions operating across both markets.
Balama said the agreements demonstrate the UAE’s commitment to expanding financial and banking cooperation with Morocco. He also highlighted the importance of sharing supervisory expertise, developing Islamic finance solutions, and strengthening payment system links.
Jouahri similarly described the agreements as an important step in expanding coordination between the two central banks. He pointed to opportunities for faster cross-border transactions and greater cooperation in digital currencies.
Payment Systems and Digital Currency
The second MoU focuses on financial infrastructure and cross-border payments. Both central banks will explore the potential interlinking of instant payment platforms, national card switches and financial messaging systems.
As a result, the proposed links could make cross-border transaction processing and settlement more efficient. The agreement also explores mutual acceptance of domestic payment cards, subject to each country’s regulatory requirements.
The two institutions will also exchange expertise on central bank digital currencies (CBDCs). This cooperation covers both retail and wholesale CBDCs.
In addition, the central banks will explore potential applications for CBDCs in cross-border payments between the UAE and Morocco. Therefore, the initiative could support further experimentation with digital settlement infrastructure.
The agreement also covers fintech cooperation and regulatory frameworks for virtual assets. These discussions include crypto-assets and stablecoins, as well as related consumer protection mechanisms.
The focus reflects the broader transformation of financial services across the region. Payment connectivity, digital currencies and fintech regulation are increasingly shaping cross-border financial cooperation.
Building Regional Financial Connectivity
The two MoUs extend cooperation beyond traditional banking supervision. Instead, they connect regulatory coordination with payment infrastructure, Islamic finance and emerging financial technologies.
For the UAE, stronger links with Morocco can support wider economic and trade relations. Meanwhile, Morocco gains another channel for cooperation with a major Gulf financial centre.
The agreements also create a framework for continued knowledge exchange. Both central banks can share regulatory experience as they develop approaches to new financial technologies.
Importantly, the agreements do not establish an immediate payment-system link or launch a joint CBDC. Rather, they provide a framework to explore those possibilities while respecting the regulatory requirements of both countries.
The latest agreements therefore broaden the UAE-Morocco financial relationship. At the same time, they highlight the growing role of digital payments, Islamic finance and financial technology in regional cooperation.
As both central banks continue their work, the proposed initiatives could contribute to faster cross-border transactions and stronger financial connectivity. They also reinforce the wider push toward more integrated and digitally enabled financial systems across the region.
