In a significant move to bolster the UAE’s financial infrastructure, the Central Bank of UAE (CBUAE) and Dubai Finance have signed a Memorandum of Understanding (MoU) aimed at enhancing cooperation in the development of the country’s capital markets. This collaboration seeks to leverage the Central Bank’s advanced financial infrastructure to support the issuance of dirham-denominated government bonds and other capital market initiatives.
Strengthening Bilateral Ties
The MoU was signed by Khaled Mohamed Balama, Governor of the CBUAE, and Abdulrahman Saleh Al Saleh, Director-General of Dubai Finance, in the presence of senior officials from both entities. This agreement underscores the commitment of both institutions to work together in fostering a robust and dynamic capital market in the UAE.
Utilizing Advanced Financial Infrastructure
One of the key aspects of this collaboration is the utilization of the Central Bank’s advanced financial infrastructure. By leveraging this infrastructure, Dubai Finance aims to issue dirham-denominated government bonds, thereby enhancing the depth and liquidity of the UAE’s capital markets. This initiative is expected to attract a diverse range of investors and contribute to the overall stability and growth of the financial sector.
Promoting Sustainable Development
The partnership between CBUAE and Dubai Finance aligns with the UAE’s broader objectives of promoting sustainable development and economic diversification. By strengthening the capital markets, the UAE aims to provide a conducive environment for investment, innovation, and economic growth. This initiative is expected to play a pivotal role in achieving the country’s long-term economic goals.
Future Collaborations
Looking ahead, both institutions are committed to exploring further avenues of collaboration in areas such as financial technology, digital currencies, and payment systems. These efforts are part of a broader strategy to enhance financial inclusion and ensure the UAE’s position as a leading global financial hub.
Conclusion
The signing of the MoU between the Central Bank of the UAE and Dubai Finance marks a significant step towards the development of the UAE’s capital markets. By leveraging advanced financial infrastructure and fostering collaboration, this partnership aims to create a robust and dynamic financial ecosystem that supports sustainable economic growth and development.
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