The UAE and Syrian central banks have agreed to deepen bilateral co-operation as Syria continues to forge ties with its neighbours to boost its rebounding economy.
The preliminary agreement includes a framework for building technical expertise for payment systems, monetary policy, cash management and financial technology, the Central Bank of the UAE said in a statement on Friday.
It will also cover climate risk management, sustainable finance, financial inclusion, financial literacy and awareness, credit information systems, and reporting and risk management frameworks, it added.
The agreement was signed by CBUAE governor Khaled Balama and Central Bank of Syria governor Mohammad Raslan.
The deal “reflects our shared interest to advancing co-operation in financial and regulatory areas … to support the resilience of the financial system, enhance the efficiency of the financial infrastructure and keep pace with developments in the financial technology sector”, Mr Balama said.
“We hope that this co-operation will create broader opportunities for financial institutions in both countries and enhance the role of the financial sector in supporting economic growth and development.”
Syria's economy is opening up following the toppling of Bashar Al Assad's regime and the removal of western sanctions last year. Gulf states and other regional countries are moving quickly to invest in Syria’s future, launching diplomatic, financial and infrastructure support.
The nation also plans to build or rehabilitate two million homes by 2035 to address housing shortages and boost its economy. Investors including UAE-based developer Arada and Emaar founder Mohamed Alabbar have revealed plans to invest in Syria’s property sector.
Earlier this week, the CBUAE agreed to renew its Dh5 billion ($1.36 billion) currency swap agreement with Egypt. The refreshed deal is valid for five years and is aimed at enhancing trade relations and financial co-operation between the countries.
The UAE central bank's agreement with Syria “represents an important step … serving as a foundation for practical and sustainable avenues of co-operation between the two central banks, contributing to more efficient banking services, supporting monetary and banking stability”, Mr Raslan added.
It would also contribute to “opening broader prospects for banking partnerships” between the two Middle East countries, he added.
