The Central Bank of the UAE and Bank Al-Maghrib signed the two agreements on the sidelines of the IMF and World Bank meetings, according to the Emirates News Agency. Khaled Mohamed Balama, governor of the CBUAE, and Abdellatif Jouahri, governor of Bank Al-Maghrib, inked the documents that focus on banking supervision alongside the development of Sharia-compliant financial services. The pacts seek to facilitate information exchange and regulatory alignment between the two institutions as they navigate evolving global financial challenges.
One memorandum establishes a framework for supervisory cooperation that includes sharing insights on financial stability and cross-border banking activities, the Emirates News Agency reported. This builds upon earlier collaboration such as the 2019 agreement between Morocco’s central bank and the Dubai Financial Services Authority, which emphasised authorisation, supervision and anti-financial crime measures for institutions operating in both jurisdictions. Representatives from the authorities are expected to hold periodic meetings to address any supervisory concerns that arise.
The second memorandum targets cooperation in Islamic finance, an area that has recorded notable expansion across both countries in recent years. A presentation by Mustafa Adil, head of Islamic finance at the London Stock Exchange Group, placed UAE Islamic finance assets at $532 billion in 2025, more than double the level of $251 billion seen in 2018. The UAE maintains 43 licensed Islamic financial institutions, including fully fledged banks such as Dubai Islamic Bank and Abu Dhabi Islamic Bank, according to CBUAE data.
Morocco has posted a five-year compound annual growth rate of 24.2 percent in Islamic banking assets, a review of Islamic banking statistics found, outpacing many regional peers. Globally the sector’s total assets stood at approximately $6.5 trillion in 2025 and are projected to reach $10.5 trillion by 2030, the same London Stock Exchange Group assessment indicated. Both central banks participate in the Islamic Financial Services Board, the international standard-setting body for the industry.
Balama described the agreements as a reflection of the strong bilateral relations between the UAE and Morocco while noting their potential to support financial sector resilience. Jouahri highlighted the importance of coordinated oversight in promoting sound banking practices across borders. The governors expressed confidence that the memoranda would open avenues for further technical exchanges and capacity building.
The moves align with the UAE’s national Islamic finance strategy that targets AED2.56 trillion in domestic Islamic finance assets by 2031, according to official statements. Islamic banks in the UAE held assets of AED989 billion as of April 2026, representing 18 percent of total banking system assets, S&P Global Ratings data shows. The CBUAE has issued regulations covering Islamic windows at conventional banks as well as specialised financing companies to ensure consistent standards across the sector.
