The Central Bank of the United Arab Emirates and the Hong Kong Monetary Authority deepen financial cooperation and market connectivity.

The Central Bank of the United Arab Emirates (UAE Central Bank) and the Hong Kong Monetary Authority held their third meeting in Abu Dhabi on February 11th (Abu Dhabi time). The meeting was co-chaired by H.E. Khaled Mohamed Balama, Governor of the UAE Central Bank, and Eddie Yue, Chief Executive of the Hong Kong Monetary Authority. This meeting is part of the ongoing efforts to enhance cooperation and connectivity in the financial services sector between the two regions, reflecting the depth of institutional cooperation and shared regulatory vision. Building on the progress made during the second meeting held in Hong Kong in December 2024, the UAE Central Bank and the Hong Kong Monetary Authority engaged in in-depth discussions on several key areas. These include cross-border debt capital market connectivity; digital assets, tokenization, and the development of central bank digital currencies; evolving trends in stablecoin regulatory frameworks; and supply chain financing. The meeting was attended by several assistant governors, deputy chiefs, and senior officials from both sides, highlighting their commitment to advancing financial and technological cooperation to support the sustainable development of the financial services industry and promote collaborative initiatives at the strategic and operational levels. Following the signing of a Memorandum of Understanding during the second meeting to establish connectivity in the debt capital markets and related financial market infrastructure, the UAE Central Bank has officially joined the Debt Instruments Central Clearing System, the core custody platform for Hong Kong debt securities. This move enables the UAE Central Bank and local investors to leverage Hong Kong's mature financial infrastructure to directly and cost-effectively access China's mainland capital markets and invest in related financial assets, marking an important step towards deepening connectivity and financial integration between the two regions. H.E. Khaled Mohamed Balama stated, "Our collaboration with the Hong Kong Monetary Authority reflects our joint commitment to enhancing cross-border financial market connectivity and international cooperation. Joining the Debt Instruments Central Clearing System allows the UAE Central Bank to access Asian capital markets and establish deeper connections with other global financial centers, providing diversified investment opportunities for market participants in the UAE and solidifying our role as a leading international capital market hub. We value this partnership and look forward to continuing cooperation to build more resilient and interconnected financial markets." Eddie Yue commented, "We are pleased to see substantial progress in the connectivity of the debt capital markets between the two sides. We welcome the UAE Central Bank as a new member of the Debt Instruments Central Clearing System, underscoring Hong Kong's position as a leading hub for offshore Renminbi businesses and the preferred gateway for international investors to access China and Asian markets. The cooperation between the two central banks also reflects a clear vision for joint development and innovation. We look forward to continuing to work with the UAE Central Bank to advance key initiatives discussed during bilateral dialogues."