Global Economy
Morocco and UAE Central Banks Forge Strategic Partnership with Dual Cooperation Agreements
Bank Al-Maghrib and the Central Bank of the United Arab Emirates have entered into two landmark memoranda of understanding signed in Abu Dhabi on October 3, 2026. These strategic agreements, formalized by governors Abdellatif Jouahri and Khaled Mohamed Balama, aim to strengthen bilateral cooperation across banking supervision, Islamic finance, and digital payment infrastructure. The partnership encompasses cross-border transaction facilitation, central bank digital currency exploration, and enhanced regulatory coordination for fintech and virtual assets.
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In a significant development for financial cooperation between Morocco and the United Arab Emirates, Bank Al-Maghrib and the UAE Central Bank have signed two comprehensive memoranda of understanding in Abu Dhabi. The agreements, announced on October 3, 2026, were formally executed by Abdellatif Jouahri and Khaled Mohamed Balama, the respective governors of both monetary authorities.
Banking Supervision and Islamic Finance Framework
The first agreement establishes a robust framework for banking supervision cooperation between the two nations. This encompasses systematic information exchange regarding banking institutions and financial establishments, coordination of regulatory practices, and knowledge transfer between supervisory teams.
A distinctive feature of this accord is its emphasis on Islamic finance. The agreement provides for collaboration between the Sharia compliance governance bodies of both central banks, facilitating the development of cross-border financing solutions that adhere to Islamic principles. Priority areas include trade finance and infrastructure development projects structured according to Sharia-compliant mechanisms.
Digital Payment Infrastructure Integration
The second memorandum focuses on exploring the interconnection of payment systems infrastructure between Morocco and the UAE. The scope includes instant payment platforms, national card payment switching systems, and financial messaging networks. The primary objective is to streamline transaction processing and settlement between the two countries while enabling reciprocal acceptance of domestic payment cards, all within the boundaries of each jurisdiction's regulatory requirements.
Central Bank Digital Currencies and Fintech Innovation
Beyond traditional payment systems, the cooperation extends to cutting-edge monetary technology. Both central banks will exchange expertise on central bank digital currencies (CBDCs) designed for retail and wholesale applications, including their potential utilization in cross-border payment scenarios.
The partnership also addresses the rapidly evolving fintech landscape, encompassing regulatory frameworks for virtual assets such as cryptocurrencies and stablecoins. Consumer protection mechanisms form an integral component of this collaborative effort, ensuring that financial innovation proceeds alongside adequate safeguards for users.
Strategic Implications
According to Governor Abdellatif Jouahri, these agreements represent a consolidation of the partnership between the two central banks and create opportunities to accelerate financial transaction processing between Morocco and the United Arab Emirates. The bilateral framework positions both nations at the forefront of regional financial integration and digital payment innovation.
This cooperation comes at a time when central banks globally are increasingly focused on modernizing payment infrastructure and exploring digital currency applications, making the Morocco-UAE partnership a notable example of South-South monetary cooperation.