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Tyler PatheTyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.
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The Central Bank of the UAE (CBUAE) has recently signed a string of agreements in a bid to promote the growth of the UAE’s fintech sector.
The CBUAE signed their first agreement with the Dubai International Financial Centre (DIFC), to promote the growth of the region’s fintech through the launch of joint initiatives and activities.
The agreement was signed during the ‘Future of Finance’ conference, which took place at the Dubai Expo 2020 this month. Both the Governor of the CBUAE, H.E. Khaled Mohammed Balama Al Tameemi, and the Governor of DIFC, H.E. Essa Kazim, were in attendance.
Both parties are set to collaborate on the development and implementation of business strategies, accelerator programmes, competitions, workshops, seminars and conferences; which are all aiming to shape the UAE’s financial sector into a more competitive entity.
Their work together will also include the development of a co-sandbox, that will allow fintechs, entrepreneurs, and regulators, like the Dubai Financial Services Authority (DFSA), to test the waters of new regulations and services.
Access to testing environments is extremely important to the rate of financial development, as they allow regulators to permit certain relaxations for the limited purpose of testing, whilst they can also check elements of cybersecurity and compliance.
Speaking on the agreement and the importance of cross-collaboration, H.E. Khaled Mohammed Balama Al Tameemi, said: “We strongly believe that one of the foremost ways to ensure a robust financial system is to develop a regulatory environment that is conducive to innovation and digitisation. We’re confident that this agreement will result in an environment that fosters the development of innovative solutions, in alignment with the nation’s ambitious economic growth plans and aspirations.”
The DIFC is home to more than 60% of the fintech and innovation-related companies that are currently operating within the GCC, and many of the initiatives that they’re developing with the CBUAE are expected to leverage their existing selection of programmes and capabilities.
“As the leading global financial centre in the MEASA region and one of the world’s top ten fintech hubs,” added H.E. Essa Kazim, “we’re focused on building a strong ecosystem of opportunities to tap the potential of fintech. Ensuring an enabling environment for start-ups and young entrepreneurs is central to this. Through our partnership with the CBUAE, we will offer fintech entrepreneurs the confidence to realise their entrepreneurial dreams, and further contribute to Dubai and the UAE’s position as the global hub for the fintech sector.”
The CBUAE’s appetite for growth was further sustained through the signing of a second agreement with the Abu Dhabi Global Market (ADGM), which was also another feature of the CBUAE’s ‘Future of Finance’ conference.
The agreement – a memorandum of understanding (MoU) – will see the two parties collaborate on the development and growth of the UAE’s fintech ecosystem through the launch of joint initiatives, accelerator programmes, competitions, workshops, seminars, conferences and projects.
The MoU was signed by the Minister of State and Chairman of ADGM, H.E. Ahmed Ali Al Sayegh, and H.E. Khaled Mohamed Balama.
Speaking on ADGM’s agreement with the CBUAE, H.E. Ahmed Ali Al Sayegh said: “The fintech sector is fast shaping the face of the global financial system, requiring coordinated attention by regulators to ensure its robust development and integration. Our agreement with the CBUAE reinforces our commitment to bolstering the UAE’s thriving fintech sector. We’re confident our continued relations with the CBUAE will result in greater regulatory excellence and further opportunities in the fintech field for international and local talent alike.”
Under the agreement, CBUAE and ADGM will further enhance the collaboration under their co-sandbox programme that will enable fintech companies to test their innovative solutions under the existing digital sandbox programme.
In his closing statement, H.E. Khaled Mohamed Balama added: “Our signing of this agreement with ADGM plays an important role in CBUAE’s commitment to enabling the greater proliferation of fintech solutions across the UAE. We’re confident that this agreement will attract key fintech players to the country and result in an enhanced environment that enables innovation to thrive, in alignment with the nation’s ambitious economic growth plans and digitisation aspirations.”