Saudi Arabia and UAE leaders confirm plans to launch digital currencies

The leaders of Saudi Arabia and the UAE have confirmed that the two countries will launch the development of digital currencies, Finance Magnates reported on Thursday (November 28).

The digital currency will be used for transactions between banks in the two countries, local media TheNational.ae reported on Wednesday.

The agreement was signed during Saudi Crown Prince Mohammed bin Salman's recent visit to the UAE, along with Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

The digital currency initiative is one of four new policy partnerships agreed by the two leaders, who also decided to review seven strategic initiatives.

The plan also includes the joint construction of a large-scale refinery with a daily output of 1.2 million barrels of crude oil, and the two countries have also agreed to strengthen cybersecurity measures between each other.

Bank officials from both countries also plan to hold a meeting to discuss challenges and opportunities facing their respective financial sectors.

Earlier this year, the UAE Central Bank and the Saudi Arabian Monetary Authority (SAMA) announced plans to introduce an interbank digital currency, and the two countries are expected to sign an agreement on its use.

Meanwhile, blockchain companies are flocking to the Middle East to tap into a market with huge growth potential. Earlier this year, Bithumb partnered with Nvelop to launch a crypto exchange in the UAE, while Huobi also recently entered the market.