The Hong Kong Financial Authority (HKMA) and the Central Financial institution of the United Arab Emirates (CBUAE) held their second bilateral assembly, reinforcing cooperation and connectivity between the monetary providers sectors of the 2 jurisdictions.
Constructing on the preliminary bilateral assembly held in Abu Dhabi in Might 2023, the HKMA and CBUAE engaged in detailed discussions specializing in a number of essential areas.
These included enhancing cross-border debt capital market connectivity, creating monetary infrastructure, and exploring funding alternatives in each the Center East and North Africa (MENA) area and Mainland China.
A big end result of at present’s assembly was the signing of a Memorandum of Understanding (MOU) by HKMA Chief Government Eddie Yue and CBUAE Governor H.E. Khaled Mohamed Balama.
The MOU is designed to formalize and strengthen cooperation between the 2 monetary authorities, notably within the realm of debt capital markets and associated monetary market infrastructures.
This settlement goals to facilitate the issuance and funding of cross-border debt securities, thereby making a extra built-in monetary setting between Hong Kong and the UAE.
Below the phrases of the MOU, each authorities will work in the direction of establishing seamless connections in debt capital markets.
This consists of enhancing the effectivity of debt securities issuance, buying and selling, funding, settlement, and collateral administration. The collaboration is anticipated to place the UAE as a gateway for issuers and traders within the MENA area to entry Chinese language and Asian debt markets extra successfully.
Conversely, it should allow Chinese language and Asian issuers and traders to faucet straight into the MENA debt market by the UAE, broadening funding alternatives and market attain on each side.
Eddie Yue emphasised the strategic significance of the settlement, highlighting that it will improve Hong Kong’s position as a pivotal gateway to the Renminbi and worldwide debt markets.
He expressed optimism in regards to the potential for brand new enterprise alternatives arising from the strengthened monetary collaboration, underscoring mutual advantages for each the Center East and Asia.
H.E. Khaled Mohamed Balama echoed Yue’s sentiments, noting the numerous progress made in debt capital market improvement and collaboration.
He underscored the initiative’s potential to unlock the complete capabilities of each debt capital markets, making certain cost-effective and environment friendly cross-border monetary transactions.
Balama highlighted the strategic significance of this cooperation in enhancing the UAE’s place as a central hub for debt market actions between the MENA area and Asia.
