KUALA LUMPUR - The United Arab Emirates (UAE) and the Philippines have signed a new agreement to strengthen financial ties through improved cross-border payment systems and expanded fintech collaboration.

The memorandum of understanding was signed between the Central Bank of the UAE and the Bangko Sentral ng Pilipinas, as reported by Gulf News. 

The agreement sets the groundwork for integrating instant payment platforms and improving transaction flows between the two countries.

It is expected to benefit both individuals and businesses, with a strong focus on remittances.

Both central banks will work towards enabling seamless cross-border transactions by linking their payment infrastructure.

The initiative may also extend to connecting national card switches and financial messaging systems in the future.

Officials said the effort aims to reduce processing times, improve efficiency and strengthen interoperability between financial systems.

The agreement also includes cooperation on central bank digital currency development.

Both sides will exchange expertise on building platforms for individuals and institutions.

Khaled Mohamed Balama, Governor of the Central Bank of the UAE described the agreement as a key milestone in financial integration.

“This agreement marks a significant step toward building a more connected and innovative financial ecosystem between the UAE and the Philippines.

“By leveraging advanced payment technologies and sharing expertise, we are laying the foundation for a new era of seamless integration and sustainable, innovation-led economic growth,” he said.

The partnership places strong emphasis on improving remittance channels for overseas Filipino workers.

Eli M. Remolona Jr., Governor of the Bangko Sentral ng Pilipinas. said the initiative supports efforts to digitalise payments.

“This partnership supports the BSP’s push to digitalise payments and make cross-border transactions more efficient.

“For Filipinos in the UAE, especially our overseas Filipino workers, this means better remittance channels and more efficient financial services for their families back home.

“We also see strong opportunities to collaborate in Islamic banking and finance as we work toward a sound and inclusive financial ecosystem,” he added.

The agreement also opens avenues for cooperation in open finance and digital assets.

Officials said the memorandum signals a broader push to strengthen trade and economic ties between the two countries.

They added that enhanced financial infrastructure and innovation will support more efficient capital flows and deeper economic integration.