UAE and Hong Kong Sign MoU to Boost Cross-Border Debt and Investment Ties
RIYADH: The UAE and Hong Kong are set to deepen ties in cross-border debt issuance and investment after signing a memorandum of understanding to enhance connectivity between their financial markets.
The Central Bank of the UAE and the Hong Kong Monetary Authority formalized the agreement during a bilateral meeting in Hong Kong on December 20, which aims to closely integrate their debt capital markets and related financial infrastructure.
The memorandum of understanding, signed by Khalid Mohamed Balama, Governor of the CBUAE, and Eddie Yu, Chief Executive of the HKMA, is expected to streamline lending, trading and settlement between Asia and the Middle East.
The cooperation is in line with the UAE’s vision to become a leading link between the Middle East and North Africa region and Hong Kong’s aspirations to strengthen its position as a bridge to global financial markets and international capital.
“This initiative will help the UAE become a gateway for issuers and investors in the MENA region to access the Chinese and Asian debt markets, while allowing Chinese and Asian issuers and investors to gain direct access to the MENA debt market through the UAE,” CBUAE Governor Khalid Mohamed Balama said in a statement.
He added: “We aim to unlock the potential of the two debt capital markets, allowing for seamless and cost-effective cross-border issuance, trading, investment, settlement and co-management of debt securities.”
The agreement follows an initial meeting in Abu Dhabi in May, where the two sides began exploring cooperation on financial infrastructure development and investment opportunities in the Middle East and North Africa region and mainland China.
Eddie Yue, chief executive of the HKMA, said the agreement underscores Hong Kong’s role as a financial hub. “This MoU will enhance mutual cooperation and exchange expertise in debt capital markets, strengthening Hong Kong’s position as a gateway to the renminbi and international debt markets,” Yue said.
He said there is significant potential for the financial sectors of the two regions to explore new business opportunities. “We look forward to our continued cooperation with the CBUAE to strengthen investment and financial market connectivity between the Middle East and Asia.”
Key participants at the meeting included Saif Humaid Al-Dhaheri, Assistant Governor for Banking Operations and Support Services at the CBUAE; Stanley Chan, Head of the Central Money Market Division at the HKMA, and other senior officials.
The move aims to open up new business opportunities for issuers and investors while enhancing market connectivity between the two jurisdictions.