The central banks of the United Arab Emirates and Hong Kong agreed to deepen cooperation on cross-border debt market links, digital assets and stablecoin regulation.
The move comes as the UAE central bank formally joined Hong Kong’s Central Moneymarkets Unit (CMU). The two sides said the partnership would broaden investor access to Asian and Chinese mainland assets.
The Central Bank of the UAE (CBUAE) and the Hong Kong Monetary Authority (HKMA) held their third bilateral meeting in Abu Dhabi on Feb. 11, chaired by CBUAE Governor Khaled Mohamed Balama and HKMA Chief Executive Eddie Yue, according to an HKMA statement issued on Thursday.
The authorities said discussions covered debt capital market connectivity, tokenisation and central bank digital currency developments, the building-out of regulatory frameworks for stablecoins, and supply chain financing.
In a concrete step on market infrastructure links, the CBUAE has become a member of the CMU, Hong Kong’s central securities depository for debt securities, following a memorandum of understanding signed during the pair’s second meeting in Hong Kong in December 2024.
The HKMA said the connectivity would provide the CBUAE and investors in the UAE with “direct and cost-effective access” to Chinese mainland capital markets and financial assets by leveraging Hong Kong’s established infrastructure, describing the move as a significant step in strengthening market connectivity between the Middle East and Asia.
Balama said the CMU membership would help diversify investment opportunities for UAE market participants and support the country’s ambition to deepen engagement with global financial centres.
Yue said the latest progress reinforced Hong Kong’s role as a leading offshore renminbi business hub and a gateway for international investors into China and broader Asian markets.
The CMU is closely linked to Hong Kong’s cross-border “Bond Connect” scheme, which allows overseas investors to access onshore Chinese bonds, and the UAE move comes as Gulf financial institutions seek to broaden access to Asian capital markets and expand cooperation on new financial technology rails.
The CMU membership gives the UAE a practical settlement-and-custody “on-ramp” into Hong Kong’s bond plumbing, which could lower frictions for Middle East investors allocating to China-related fixed income and collateral products.
At the same time, the agenda items on tokenisation, CBDCs and stablecoin frameworks suggest the two regulators are trying to coordinate standards early, to avoid fragmented rules as cross-border digital-asset activity scales.