UAE’s UBF, Azerbaijan Banks Association sign MoU to boost sectoral cooperation

The UAE Banks Federation (UBF) has signed an MoU with the Azerbaijan Banks Association (ABA) to enhance cooperation and exchange of experiences, and promote the growth of the financial and banking sectors in both countries.

Founded in 1982, UBF comprises 57 members of banks and financial organisations operating in the UAE. The ABA was founded by the initiative of 10 private banks in 1990. At present, it has more than 30 banks as members.

The agreement aims to strengthen ties further and develop the business of the financial and banking institutions under the direct supervision and guidance of both the central banks of both countries.

The two parties agreed to jointly organise various activities in the finance and banking sector to exchange knowledge and experience through events such as workshops, training and awareness programmes.

UAE and Azerbaijan cooperation

“This agreement will enhance the knowledge of banks and investors in Azerbaijan about investment and business opportunities in the UAE,” said Jamal Saleh, the director general of UAE Banks Federation in a statement.

The partnership highlights the development of the UAE’s banking sector, which has strengthened the country’s position as one of the world’s leading financial and banking centres, added Saleh.

It is expected to provide Azerbaijani banks and investors the opportunity to learn about the development of the banking and financial sector in the UAE in terms of the progress made in digital transformation, legislation, governance, transparency and risk management.

Meanwhile, the signing of the MoU comes from the significant increase in trade exchanges and joint investments between the UAE and Azerbaijan. Trade between the two countries surged by more than 100 per cent in 2022 compared to 2021.

Other areas of collaboration

The UAE and Azerbaijan are also working together in the renewable energy sector. Last month, Masdar opened a new office in Azerbaijan’s capital Baku as part of the Abu Dhabi-based clean energy firm’s broader commitment to support the country’s renewable energy development efforts.

Read: Masdar opens office in Azerbaijan, aims to support country’s clean energy objectives

The opening of the new office follows the signing of joint agreements between Masdar and the State Oil Company of the Republic of Azerbaijan for the development of onshore wind and solar projects and integrated offshore wind and green hydrogen projects with a total combined capacity of 4GW.

Masdar is also developing the 230MW Garadagh Solar PV Plant in Azerbaijan. The plant will generate half a billion kilowatt-hours of electricity annually, enough to meet the needs of more than 110,000 homes and will reduce emissions by more than 200,000 tonnes a year, while also creating valuable jobs.