UAE Central Bank Moves to Deepen Internal Audit’s Role in Financial Supervision

Key Takeaways

• Internal Audit Elevated in Supervision: The UAE central bank is formalizing closer cooperation with the UAE Internal Auditors Association to embed international internal auditing standards more deeply into financial oversight.
• Governance Frameworks in Focus: The partnership includes initiatives to develop oversight systems and modernize corporate governance frameworks across financial institutions.
• Talent and Emiratization Priority: The agreement emphasizes specialized programs to enhance professional skills and accelerate the Emiratization of the internal auditing profession.
• Knowledge Sharing and Culture Building: Both entities will exchange expertise, share information, and organize joint events to promote a stronger culture of internal oversight.
• Confidence and Global Alignment: The stated objective is to bolster confidence in financial transactions and align the UAE’s supervisory practices with global best standards.

Deep Dive

The UAE’s central bank is tightening its embrace of the internal audit profession, signing a cooperation agreement that positions auditors more squarely at the center of financial supervision and governance reform.

The Central Bank of the United Arab Emirates on Thursday formalized a Memorandum of Understanding with the UAE Internal Auditors Association at its headquarters in Abu Dhabi, describing the step as part of a broader effort to modernize regulatory frameworks and strengthen oversight across the financial sector.

The agreement was signed by H.E. Ibraheem Al Sayed Mohamed Al Hashemi, Assistant Governor for Executive Office and Secretary General of the Board of Directors at the central bank, and H.E. Abdulqader Obaid Ali, Chairman of the UAE Internal Auditors Association, in the presence of senior officials from both organizations.

While structured as an MoU, the initiative signals a closer integration between supervision and professional audit standards. According to the announcement, the two sides will work to elevate financial oversight in the UAE by adopting the highest international internal auditing standards and by launching initiatives to further develop oversight systems.

The partnership also aims to modernize corporate governance frameworks in financial institutions, with the stated objective of reinforcing confidence in financial transactions and aligning domestic practices with global best standards.

A significant element of the agreement focuses on people as much as policy. The two entities said they will invest in UAE talent through specialized programs designed to enhance skills and accelerate the Emiratization of the internal auditing profession within financial institutions. The MoU also provides for the exchange of expertise and information, as well as joint events intended to promote a culture of internal oversight across companies and institutions.

In remarks accompanying the signing, H.E. Ibraheem Al Sayed Mohamed Al Hashemi said the agreement reflects the central bank’s commitment to advancing the UAE financial sector in line with the country’s leadership vision.

“This MoU embodies CBUAE’s commitment to the vision of our wise leadership towards pioneering the UAE financial sector,” he said. “At the CBUAE, we are keen on integrating efforts with all partners to develop professional institutions, modernise work mechanisms, and build specialised national capabilities. Strengthening the culture of financial supervision is a fundamental pillar in making our financial institutions active partners in the sustainable growth and economic prosperity in the UAE.”

H.E. Abdulqader Obaid Ali described the agreement as a milestone in the evolution of internal auditing in the country.

“Through this collaboration, we aim to empower Emirati auditors and provide them with the latest tools and knowledge that match global standards,” he said. “This synergy ensures the enhancement of national institutions' capabilities, enabling them to anticipate future challenges with confidence and efficiency.”

Framed against ongoing efforts to modernize the business environment and supervisory architecture, the agreement underscores a growing recognition that effective financial oversight depends not only on regulation, but on the strength and independence of the internal audit function itself.

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