The central banks of the UAE and the Philippines have signed an agreement that includes efforts to develop digital currencies and link payment systems, as they work to boost cross-border transactions.
That is part of an initial deal that also includes discussions on key areas such as Islamic banking and developing financial technology and infrastructure, as well as growing economic co-operation and bilateral trade, the UAE Central Bank said in a statement on Tuesday.
The UAE had already introduced the Digital Dirham, a key initiative of the Financial Infrastructure Transformation programme launched by the central bank in 2023. The Philippines, meanwhile, is in its central bank digital currency (CBDC) pilot phase.
A CBDC is a digital form of a government-issued currency. They are similar to cryptocurrencies, except their value is fixed by the monetary authority and equal to the country's fiat currency.
CBDCs are expected to provide some middle ground for the highly volatile cryptocurrency market. They reduce the risks associated with using cryptocurrency and provide a stable means of exchanging digital assets.
"This agreement marks a significant step towards building a more connected and innovative financial ecosystem between the UAE and the Philippines," said Khaled Balama, governor of the UAE Central Bank. "By leveraging advanced payment technologies and sharing expertise, we are laying the foundation for a new era of seamless integration and sustainable, innovation-led economic growth.”
The UAE and the Philippines have continued to strengthen ties. Filipinos comprise one of the biggest expatriate populations in the Emirates and have been a key source of remittances.
“This partnership supports the [Philippine central bank's] push to digitalise payments and make cross-border transactions more efficient," said central bank governor Eli Remolona Jr. "For Filipinos in the UAE, especially our overseas Filipino workers, this means better remittance channels and more efficient financial services for their families back home."
The UAE is the Philippines's top export market among Arab and African countries – and its 17th largest trade partner globally. Bilateral non-oil trade between the UAE and the Philippines grew 22.4 per cent annually to $853.7 million in the first nine months of 2025. It is on pace to pass the $940 million posted in the previous year, official data shows.
Earlier this year, the UAE and the Philippines formalised their Comprehensive Economic Partnership Agreement, which reduces tariffs, enhances co-operation between the countries' private sectors, boosts supply chains and enables small and medium enterprises to expand their access to global markets.
Co-operation between the UAE, the Arab world's second biggest economy, and the Philippines is growing on several fronts, including UAE airlines being granted permission to operate more flights to Manila and Abu Dhabi clean energy company Masdar signing deals to develop renewable energy projects in the Philippines.
