On February 12, 2023, the Central Bank of the United Arab Emirates (CBUAE) revealed a new program, called the “Financial Infrastructure Transformation Programme”. Nine key initiatives are planned within the program.
UAE’s Financial Infrastructure Transformation Program to Reduce Cross-Border Inefficiencies and Boost Domestic Innovation
The Central Bank of the United Arab Emirates (CBUAE) has launched the “Financial Infrastructure Transformation Programme” (FIT) to improve the region’s financial infrastructure. The FIT is designed to enhance the CBUAE mission of “financial and monetary stability” by way of “robust financial infrastructure” and the adoption of digital technology.
The nine initiatives included in the Financial Infrastructure Transformation (FIT) Program are: A nationwide card scheme, eKYC; a central bank digital currency (CBDC); open finance, supervisory data, an innovation hub; a platform instant payments; a financial cloud; and enhance the customer’s experience. The CBDC is intended for both cross-border payments and domestic use. The goal of the CBDC is to address inefficiencies in cross-border payments and encourage innovation in domestic payments. Full implementation of the FIT Program is planned for 2026.
“The FIT program embodies the directions and aspirations of our wise leadership towards the digitization of the economy and the development of the financial sector. We are proud to build an infrastructure that will support a thriving UAE financial ecosystem and its future growth,” said HE Khaled Mohamed Balama, Governor CBUAE, in a press release. “We will work with our partners to implement the program, achieve its goals, accelerate the adoption of digital services in the financial sector, and attract the best talent.”
The Financial Infrastructure Transformation (FIT) Program is aligned with the vision of His Highness Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Court and Chairman of the Board of Directors of the Central Bank of the United Arab Emirates. The CBUAE recognizes that upon completion of each initiative, updates on implementation will be available. The goal of the program is to “enhance the UAE’s competitiveness” as a global leader in digital and financial services. The recent CBDC pilot program was observed by the Saudi Arabian Monetary Authority (SAMA).
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