The UAE Central Bank and Dubai Finance signed an MOU ( Memorandum of Understanding) to strengthen their bilateral ties especially when it comes to the development of capital market in the UAE, including the development of the Central Bank digital Currency (CBDC).

According to the UAE Central Bank press release , This MOU will enable Dubai Finance Department to utilize the Central Bank’s
advanced financial infrastructure to issue dirham denominated government bonds and complementing efforts in developing the capital market in the country. Both parties will continue to deepen bilateral cooperation in the areas of financial technology, payment systems, the development of a Central Bank digital currency platform, and support for innovative financial services to enhance financial
inclusion in the country. Capacity-building will also be promoted through training programs and the exchange of expertise and experiences.

H.E. Khaled Mohamed Balama stated, Governor of the CBUAE noted that the MOU was an important step towards advancing UAE’s financial markets and adaptation to future changes. He explained, “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 digitization 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.”

For his part, H.E. Abdulrahman Saleh Al Saleh, Director General of Dubai’s Department of Finance, emphasized the importance of collaboration among financial regulatory bodies in the country to develop the financial services sector and reinforce the UAE’s position as one of the world’s leading financial hubs attractive to investments.

In March of this year, the Central Bank of UAE (CBUAE) unveiled its new symbol for the UAE’s national currency, the Dirham and committed to the launch of the Digital Dirham as a CBDC by the end of 2025. The CBDC project launched in 2023 witnessed huge progress and will incorporate a Digital Dirham wallet. The Digital Dirham is already being used for B2B purposes.