UAE-Saudi digital currency project to cut remittance costs: official

UAE Central Bank governor Mubarak Al Mansouri said the UAE-Saudi digital currency project will help cut remittance costs.

It will also contribute to enhancing transfers among banks and mutual trade between the two countries, Al Mansouri added on the sidelines of the Annual Conference of KSA and UAE Banks.

Both countries have planned 44 joint projects under the “Strategy of Resolve”, which outlines three main axes in the fields of economy, human and knowledge, as well as politics, security and military.

A large package of joint economic initiatives and programs falls under the economic axis, including digital currency, establishment of a joint investment fund to invest in small and medium-sized enterprises, and enablement of banks in both countries.

It also comprises harmonizing economic procedures and legislations and setting up a joint council to coordinate foreign investments.

The UAE and Saudi central banks have also launched a distributed ledger “proof of concept” system to facilitate cross-border settlements, Al Mansouri stated.  

In January, the Saudi Arabian Monetary Authority (SAMA) and the UAE central bank launched the common digital currency project called “Aber”, Argaam reported.