The Ministry of Finance, MoF, today signed a Memorandum of Understanding, MoU, with Abu Dhabi Global Market, ADGM, and the International Bank for Reconstruction and Development, IBRD, to provide innovative financial technology services, FinTech, to maintain an efficient growth in the financial sector.
The MoU aims to establish an International Technology Centre, ITC, in the UAE, and came on the sideline of the launching event of the Gulf Economic Monitor initiative, spring 2019. The event was held by the Ministry of Finance in partnership with ADGM and the World Bank Group, WBG, under the title: “Building the Foundations for Economic Sustainability: Human Capital and Growth in the GCC.” The biannual Gulf Economic Monitor report of the World Bank highlights the key development achievements realised in the Gulf countries, by shedding the light on the comprehensive economic trends and the major challenges facing the GCC countries.
The MoU was signed in the premises of ADGM by Younis Haji Al Khoori, Under-Secretary of MoF, and Dhaher bin Dhaher Al Mheiri, CEO of the Registration Authority of Abu Dhabi Global Market, and Dr. Issam Abousleiman, Country Director of the GCC Countries, Middle East and North Africa, IBRD.
Younis Al Khoori confirmed that the UAE is committed to participating in the realisation of economic development, financial sustainability and economic diversity through adopting new innovative technologies and consolidating the UAE’s position as an international centre for FinTech. He also noted that the conclusion of this agreement comes in line with the ministry’s interest in strengthening its relationships with different active international financial institutions within the WBG and IBRD.
Al Khouri said, “The International Technology Centre of the UAE shall take the achievement of the common goals of the UAE and the IBRD as its main task, and shall provide a platform that offers the exchange of experiences and best practices in the field of legislation and financial policies formulation, by encouraging the adoption of the latest modern techniques by governments and private and public sectors alike.”
Ahmed Ali Al Sayegh, Minister of State and Chairman of ADGM, said: “ADGM is pleased to work with the Ministry of Finance and World Bank to further develop the technology start-up ecosystem and build a community of leading global and local technology companies. The UAE has been a strategic partner of the World Bank Group and through this MoU, ADGM will strengthen this partnership. We look forward to collaborating to reinforce global initiatives that promote the long-term economic growth and development of the community. As an International Financial Centre, ADGM supports the government plans of achieving economic diversification and contributes to the competitiveness of the UAE market, by acting as a catalyst of growth for innovation and technology.”
As per the MoU, the International Technology Centre is decided to be established in the office of IBRD in Abu Dhabi and is anticipated to be the location of concluding financial partnerships and agreements bringing together governments and private sectors’ companies both on the regional and international levels. The ITC centre is meant to support the efforts exerted for the application of FinTech and Digital Economy in the MENA region. The Centre shall enable IBRD to practice its developmental operations in the region, after consulting the involved parties of the MoU.
Dr. Issam Abousleiman said: “The choice of the UAE as an international technology center comes from its pioneering role in promoting innovation, supporting youth and women, and harnessing technology to promote development. These key pillars are the focus of WBG’s strategy in the region, aiming to encourage investment in human capital, the digital economy and in supporting the private sector as an engine to create jobs for youth and women.”