UAE and Syria Forge Strategic Financial Partnership to Boost Economic Growth

The Central Bank of the UAE and the Central Bank of Syria have reached a preliminary agreement to strengthen bilateral co-operation as Syria works to rebuild its economy through renewed regional ties.

According to a statement released by the Central Bank of the UAE on Friday, the framework will focus on developing technical expertise in payment systems, monetary policy, cash management, and financial technology. Additionally, the partnership will encompass climate risk management, sustainable finance, financial inclusion, financial literacy, credit information systems, and reporting and risk management frameworks.

The agreement was officially signed by CBUAE governor Khaled Balama and Central Bank of Syria governor Mohammad Raslan.

Mr Balama stated that the deal reflects a shared commitment to advancing co-operation in financial and regulatory sectors. He noted that the initiative aims to support the resilience of the financial system, improve financial infrastructure efficiency, and adapt to developments in financial technology. He added that the collaboration is expected to create broader opportunities for financial institutions in both nations and enhance the financial sector's contribution to economic growth and development.

Syria's economy is currently opening up following the removal of western sanctions and the downfall of Bashar Al Assad's regime last year. In response, Gulf states and other regional nations are moving swiftly to invest in the country's future by offering financial, diplomatic, and infrastructure support. As part of its economic recovery plan, Syria intends to construct or rehabilitate two million homes by 2035 to tackle housing shortages and stimulate growth. Prominent investors, including UAE-based developer Arada and Emaar founder Mohamed Alabbar, have already announced plans to invest in the Syrian property sector.

This development follows another recent agreement by the CBUAE to renew a Dh5 billion ($1.36 billion) currency swap agreement with Egypt for a five-year term, designed to strengthen financial co-operation and trade relations between the two countries.

Mr Raslan described the agreement with the UAE central bank as a crucial milestone that establishes a foundation for practical and sustainable co-operation. He emphasized that it will contribute to more efficient banking services, support monetary and banking stability, and open up broader prospects for banking partnerships between the two Middle East countries.