The Hong Kong Monetary Authority (HKMA) and the Central Bank of the United Arab Emirates (CBUAE) held their second bilateral meeting, reinforcing cooperation and connectivity between the financial services sectors of the two jurisdictions.
Building on the initial bilateral meeting held in Abu Dhabi in May 2023, the HKMA and CBUAE engaged in detailed discussions focusing on several critical areas.
These included enhancing cross-border debt capital market connectivity, developing financial infrastructure, and exploring investment opportunities in both the Middle East and North Africa (MENA) region and Mainland China.
A significant outcome of today’s meeting was the signing of a Memorandum of Understanding (MOU) by HKMA Chief Executive Eddie Yue and CBUAE Governor H.E. Khaled Mohamed Balama.
The MOU is designed to formalize and strengthen cooperation between the two financial authorities, particularly in the realm of debt capital markets and related financial market infrastructures.
This agreement aims to facilitate the issuance and investment of cross-border debt securities, thereby creating a more integrated financial environment between Hong Kong and the UAE.
Under the terms of the MOU, both authorities will work towards establishing seamless connections in debt capital markets.
This includes improving the efficiency of debt securities issuance, trading, investment, settlement, and collateral management. The collaboration is expected to position the UAE as a gateway for issuers and investors in the MENA region to access Chinese and Asian debt markets more effectively.
Conversely, it will enable Chinese and Asian issuers and investors to tap directly into the MENA debt market through the UAE, broadening investment opportunities and market reach on both sides.
Eddie Yue emphasized the strategic importance of the agreement, highlighting that it would enhance Hong Kong’s role as a pivotal gateway to the Renminbi and international debt markets.
He expressed optimism about the potential for new business opportunities arising from the strengthened financial collaboration, underscoring mutual benefits for both the Middle East and Asia.
H.E. Khaled Mohamed Balama echoed Yue’s sentiments, noting the significant progress made in debt capital market development and collaboration.
He underscored the initiative’s potential to unlock the full capabilities of both debt capital markets, ensuring cost-effective and efficient cross-border financial transactions.
Balama highlighted the strategic importance of this cooperation in enhancing the UAE’s position as a central hub for debt market activities between the MENA region and Asia.
