The Saudi Central Bank (SAMA) and the Central Bank of the United Arab Emirates (CBUAE) have signed a Memorandum of Understanding (MoU), which aims at establishing a general framework for cooperation activities in the field of supervision and control within the insurance sector in both countries.
The signing ceremony took place in the presence of His Excellency Fahad Almubarak, governor of the SAMA, and His Excellency Khalid Balama, governor of the CBUAE.
The MoU will lay the foundations for establishing a framework for cooperation between the two parties, to consolidate the role of supervision over the insurance sector in the UAE and the Kingdom of Saudi Arabia to promote mutual cooperation and common interests.
It will also focus on the joint efforts between the SAMA and the CBUAE for the exchange of supervisory and regulatory information in relation to the insurance sector Including, solvency rules, the calculation of technical allocations, investment policy rules, and procedures related to supervision, follow-up, and enforcement on insurance companies, including cross-border companies.
“We endeavor to strengthen cooperation and exchange experiences with our counterparts in the Kingdom of Saudi Arabia, in the financial fields, including the insurance sector. The MoU would improve the performance of the financial sector supervision system, investment growth and trade cooperation, as well as promote economic partnership relations between the two countries.”
Both entities will also cooperate on the implementation of international standards in their markets, particularly the International Financial Reporting Standard. In addition to the standards and recommendations issued by the International Association of Insurance Supervisors and the Islamic Financial Services Board, the MoU also provides for the exchange of information related to suspicious activities, fraud in the insurance sector, money laundering and terrorist financing.