The digital currency, ‘Aber” was announced in January on a preliminary trial basis amid plans to roll out a number of new economic measures in Saudi Arabia and the United Arab Emirates (UAE).
The Crown Prince of Saudi Arabia Mohammed bin Salman arrived in the UAE for his second official visit last week, and the purpose of this visit was to discuss the creation of a joint digital currency between the two countries.
The discussion has led to the official confirmation of the joint digital currency. Details of the joint-issued digital currency were revealed earlier this year by the United Arab Emirates Central Bank (UAECB) and the Saudi Arabian Monetary Authority (SAMA).
The two countries with a combined economy of over $1.2 trillion also announced new policies which include plans to construct a new joint oil refinery as well as cooperating on cybersecurity.
The digital currency would be one of the latest moves to promote strengthened ties between the two Arab states.
According to a Saudi news agency, Spa, a UAE spokesperson declared that the two countries “agreed on many Arab issues”, further emphasising that Saudi Arabia “carries the banner of defending its interests against all aspirations and projects aimed at splitting Arab unity.”
As tweeted by Sheikh Mohamed Bin Zayed of the UAE, “I am delighted to welcome my brother and friend, Mohammed bin Salman, to his second home, the UAE. Our dear guest is among his family.”
The digital currency would allow central banks within the two countries to trade with one another easily. However, it is uncertain at this stage whether the digital currency will be made available for the public.
Contrary to its previous statement where the Saudi Arabian government criticized digital currencies and cryptocurrency in general for the lack of laws and central authority overseeing these digital assets, it seems that the government has now softened its stance towards digital currencies.