CBUAE And Hong Kong Monetary Authority Enhance Financial Market Cooperation Through New MoU

The Central Bank of the United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) recently held their second bilateral meeting in Hong Kong, aiming to enhance cooperation between their financial sectors. This meeting was attended by Saif Humaid Al Dhaheri from CBUAE, Stanley Chan from HKMA, and other senior officials.

Following a previous meeting in Abu Dhabi in May 2023, both parties have engaged in comprehensive discussions. These discussions focused on cross-border debt capital market connectivity, financial infrastructure development, and investment prospects in the Middle East and North Africa (MENA) region and Mainland China.

A Memorandum of Understanding (MoU) was signed by Khaled Mohamed Balama, Governor of the CBUAE, and Eddie Yue, Chief Executive of the HKMA. This MoU aims to formalise cooperation arrangements between the two authorities. It focuses on establishing connectivity for debt capital markets and related financial infrastructures between Hong Kong and the UAE.

The agreement seeks to facilitate cross-border debt securities issuance and investment activities. The Governor of CBUAE expressed satisfaction with the progress made, stating that this initiative will unlock potential in both capital debt markets. It aims to enable seamless cross-border debt securities issuance, trading, investment, settlement, and collateral management.

This initiative positions the UAE as a gateway for issuers and investors from the MENA region to access China and Asian debt markets efficiently. Simultaneously, it allows Chinese and Asian issuers and investors direct access to the MENA debt market through the UAE.

Eddie Yue highlighted that these discussions have strengthened financial collaboration between the two central banks. He noted that the MoU would enhance mutual cooperation and expertise exchange in debt capital markets. This move reinforces Hong Kong's strategic role as a gateway to both Chinese and international debt markets.

Yue also mentioned significant potential for exploring new business opportunities within both financial sectors. He expressed eagerness for continued collaboration with CBUAE to bolster investment and financial market connectivity between the Middle East and Asia.

This partnership marks an important step towards fostering deeper economic ties between these regions. By facilitating efficient access to diverse markets, it opens up new avenues for growth and development in their respective financial sectors.

With inputs from WAM