The Central Bank of the UAE signed a Memorandum of Understanding (MoU) with the Saudi Central Bank (SAMA) on 19 September to establish a general framework for the supervision of the insurance sector in both countries.
As part of the agreement, the two countries will exchange supervisory and regulatory information related to solvency rules, the calculation of technical allocations, investment policy rules, and procedures related to supervision, follow-up, and enforcement of regulations on insurance companies, including cross-border companies, the UAE central bank said on Tuesday.
The UAE and Saudi Arabia will also exchange information related to suspicious activities, fraud in the insurance sector, money laundering and terrorist financing.
Khaled Mohamed Balama, governor of the CBUAE, said: "The [agreement] would improve the performance of the financial sector supervision system, investment growth and trade co-operation, as well as promote economic partnership relations between the two countries,"
Fahad Al Mubarak, governor of SAMA, said: "Sama looks forward to working … with the Central Bank of the UAE for strengthening of the integrated economic system between the two countries in the field of insurance, and to enhance the economic structure in support of the growth and prosperity of the insurance sector in both countries."
