Chief Executive of the Hong Kong Monetary Authority Eddie Yue Wai-man (right) meets with Governor of the Central Bank of the United Arab Emirates Khaled Mohamed Balama (left) on May 29, 2023. (PHOTO / HKMA)

HONG KONG - The Hong Kong Monetary Authority and the United Arab Emirates’ central bank said on Tuesday they plan to boost cooperation in multiple areas as the two markets seek to strengthen financial ties.

The Central Bank of the United Arab Emirates (CBUAE) and the HKMA held a bilateral meeting in Abu Dhabi on May 29 to enhance collaboration between the financial services sectors of the two jurisdictions, according to an HKMA statement.

“During the meeting, the CBUAE and the HKMA discussed a number of collaborative initiatives and agreed to strengthen cooperation in three major areas including financial infrastructure, financial market connectivity between the two jurisdictions and virtual asset regulations and developments,” the statement reads.

A joint working group led by the CBUAE and HKMA, with support from stakeholders of the two jurisdictions’ banking sectors, will be formed to take forward the agreed initiatives

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They also facilitated discussions on joint fintech development initiatives and knowledge sharing efforts.

“Hong Kong and the UAE are two financial centers sharing many complementary strengths and mutual interests, and there is much room for market participants from these two places to work together and build up the connectivity,” Chief Executive of the HKMA Eddie Yue Wai-man was quoted as saying in the statement.

“We look forward to continued collaboration with the CBUAE and to more exchange between the Hong Kong and the UAE financial sectors, and would welcome the UAE stakeholders’ visit to Hong Kong in the near future.”

A joint working group led by the CBUAE and HKMA, with support from stakeholders of the two jurisdictions’ banking sectors, will be formed to take forward the agreed initiatives.

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After the bilateral meeting, the CBUAE and the HKMA, joined by senior executives from the UAE and Hong Kong Special Administrative Region banks, conducted a seminar on key opportunities to pursue between the HKSAR and the UAE.

The seminar included discussions on possible arrangements to facilitate better cross-border trade settlement, how UAE corporates can better utilize the HKSAR financial infrastructure platforms to access Asia and Chinese mainland markets, and financial and investment solutions and capital markets opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area.

“We are pleased to have welcomed the Hong Kong Monetary Authority and its delegation to the UAE as we look to build on our central banks’ existing and robust relations,” said Governor of the CBUAE Khaled Mohamed Balama.

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"We look forward to a longstanding engagement with the HKMA and the Hong Kong financial services sector more broadly, and we will continue collaborating with and exchanging knowledge in these mutual areas of interest."

With Reuters inputs