The Central Bank of the UAE (CBUAE) and the Hong Kong Monetary Authority (HKMA) held their second bilateral meeting in Hong Kong, reinforcing their commitment to financial cooperation and cross-border market connectivity. The meeting, which took place on Friday, December 20, 2024, marked a significant step forward in linking the financial ecosystems of the UAE and Hong Kong.
The event was attended by prominent officials, including Saif Humaid Al Dhaheri, Assistant Governor for Banking Operations and Support Services at CBUAE, and Stanley Chan, President of the Central Moneymarkets Unit of HKMA, alongside other senior representatives.
Strengthening Connectivity and Financial Market Infrastructure
This meeting builds on the foundations laid during their first bilateral engagement in May 2023 in Abu Dhabi. Discussions between the two central banks have focused on crucial areas such as cross-border debt capital market integration, advancements in financial infrastructure, and expanding investment opportunities between the Middle East and North Africa (MENA) region and Mainland China.
A key highlight of the meeting was the signing of a Memorandum of Understanding (MoU) by Khaled Mohamed Balama, Governor of the CBUAE, and Eddie Yue, Chief Executive of the HKMA. The MoU formalizes collaborative efforts to establish robust connectivity between the debt capital markets and financial market infrastructures of the two jurisdictions.
Under this agreement, the two authorities aim to facilitate seamless cross-border debt securities issuance and investment, enhancing the accessibility and efficiency of these markets.
Unlocking Opportunities in Debt Markets
Khaled Mohamed Balama, Governor of CBUAE, praised the progress achieved, stating:
“I am glad to see encouraging progress made today between the two central banks in agreeing on the way forward on capital debt market development and collaboration. We aim at unlocking the potential of the two capital debt markets to allow seamless and cost-effective cross-border debt securities issuance, trading, investment, settlement as well as collateral management.
This initiative will help the UAE become the gateway for issuers and investors in the MENA region to have efficient access to the China and Asian debt markets, whilst also, allowing Chinese and Asian issuers and investors to gain direct access to the MENA debt market through the UAE.”
Hong Kong’s Strategic Role
Eddie Yue, Chief Executive of the HKMA, expressed optimism about the collaboration:
“We are delighted to welcome the CBUAE delegation to Hong Kong. Today’s discussions strengthened the financial collaboration between the two central banks in several important areas. The MoU, in particular, will further enhance mutual cooperation and the exchange of expertise between the HKMA and the CBUAE in debt capital markets, and reinforce Hong Kong’s strategic role as a gateway to both the Chinese and international debt markets.
There is significant potential for the financial sectors of both sides to explore new business opportunities. We look forward to our continued collaboration with the CBUAE to strengthen investment and financial market connectivity between the Middle East and Asia.”
A Path Forward for Financial Collaboration
This partnership aims to bridge the gap between the MENA and Asian financial markets, providing issuers and investors with efficient access to each other’s debt capital markets. By leveraging the expertise of both the UAE and Hong Kong, the initiative is poised to foster economic growth, expand investment opportunities, and reinforce the strategic importance of both regions in the global financial landscape.
