UAE and Morocco Central Banks Sign MoUs to Interlink Payment Systems and CBDCs

The Central Bank of the United Arab Emirates and Bank Al-Maghrib have signed two Memoranda of Understanding to interlink payment systems and align banking supervision. For fintech leaders, this move signals a major shift toward cross-border interoperability in the MENA region, specifically targeting instant payments, CBDCs, and Shariah-compliant financial frameworks between the two nations.

What was announced

The Central Bank of the United Arab Emirates (CBUAE) and Bank Al-Maghrib have formalised a strategic partnership through two Memoranda of Understanding (MoUs) designed to unify banking supervision and modernise financial infrastructure. Signed at the CBUAE headquarters in Abu Dhabi by His Excellency Khaled Mohamed Balama, Governor of the CBUAE, and His Excellency Abdellatif Jouahri, Governor of Bank Al-Maghrib, the agreements establish a framework for deep technical and regulatory cooperation.

The first MoU focuses on the alignment of supervisory practices. Both central banks have committed to exchanging information regarding the health and regulation of banks and financial institutions operating within their jurisdictions. A primary component of this agreement is the coordination of Shariah governance bodies. This involves the development of cross-border Shariah-compliant financing mechanisms, specifically targeting trade finance and infrastructure investment, which are vital for bilateral economic growth.

The second MoU addresses the technical integration of payment systems. The two institutions will investigate the interlinking of their respective instant payment platforms and national card switches. This initiative aims to facilitate the mutual acceptance of domestic payment cards and streamline the settlement of cross-border transactions. Additionally, the partnership covers the development of both retail and wholesale central bank digital currencies (CBDCs). The banks intend to explore the use of CBDCs for cross-border payments while collaborating on the regulation of virtual assets, including stablecoins and crypto-assets, with a specific focus on consumer protection.

"The signing of the two MoUs with Bank Al-Maghrib reflects our commitment to expanding financial and banking cooperation with the brotherly Kingdom of Morocco, in line with the vision of the UAE’s wise leadership and in support of the mutual interests of both countries. Through this cooperation, we look forward to exchanging supervisory expertise, developing Islamic finance solutions, and exploring opportunities to strengthen links between payment systems, contributing to a more efficient and innovative financial sector and supporting economic and trade relations between the two countries."

His Excellency Khaled Mohamed Balama, Governor of the CBUAE

The companies involved

The Central Bank of the United Arab Emirates (CBUAE) serves as the primary financial regulatory authority for the UAE, overseeing the nation's monetary policy and the stability of its banking sector. Based in Abu Dhabi, the institution has positioned itself as a proactive architect of the region’s digital finance landscape, focusing on the modernisation of domestic payment infrastructure and the regulation of emerging asset classes.

Bank Al-Maghrib, the central bank of the Kingdom of Morocco, operates as the sole issuing authority of the Moroccan dirham and the chief supervisor of the country’s credit institutions. Headquartered in Rabat, the bank maintains a critical role in managing Morocco’s inflation and foreign exchange reserves while overseeing the evolution of the national payment system. Unlike many of its regional peers, Bank Al-Maghrib has maintained a distinct focus on integrating Shariah-compliant banking within its broader regulatory framework. This bilateral agreement represents a significant alignment between two of the most influential financial regulators in the Middle East and North Africa, bridging the Gulf and the Maghreb through shared technical and supervisory standards.

What FF News has reported before

FF News has closely followed the CBUAE’s push toward financial modernisation and regional integration. In late 2026, the regulator reached a similar milestone when the UAE and Syria Central Banks Sign Landmark MoU to Boost Fintech and Financial Stability, highlighting a pattern of bilateral cooperation across the Middle East.

The central bank has also been instrumental in opening the UAE market to global fintech innovators. We recently reported that Revolut Secures Key UAE Payment Licences to Accelerate Middle East Expansion, a move that aligns with the CBUAE’s goal of diversifying the local financial services sector. Furthermore, the regulator's commitment to infrastructure evolution was evidenced when Fintech Galaxy Secures UAE Central Bank Approval to Power Open Finance Era, marking a pivotal step in the country's transition toward a more transparent and interconnected banking environment.

What this means

This agreement underscores a growing impatience among central banks with the friction inherent in traditional cross-border settlement. By exploring the direct interlinking of national card switches and instant payment platforms, the UAE and Morocco are effectively bypassing legacy correspondent banking hurdles. This move puts significant pressure on traditional remittance players who rely on high-fee, slow-settlement models. Furthermore, the focus on Shariah-compliant trade finance suggests a move toward a more integrated Islamic financial ecosystem that could serve as a blueprint for other nations. The inclusion of CBDCs in the MoUs raises critical questions for the industry regarding the technical interoperability of digital currencies across different jurisdictions and how these will coexist with existing virtual asset frameworks.