(Reuters) -The UAE and Hong Kong on Thursday signed a regulatory agreement to allow investment funds and asset managers licensed in one market to be recognized in the other, streamlining cross-border access and expanding flows between Asia and the Middle East.
The memorandum of understanding, signed between the UAE’s Securities and Commodities Authority and Hong Kong’s Securities and Futures Commission, sets out a framework for mutual recognition of funds, easing regulatory duplication and creating a clearer path for firms to operate in both jurisdictions.
The agreement also provides for enhanced cooperation between the two entities, including information exchange, cross-border inspections, and the sharing of supervisory practices.
It is the first such arrangement between Hong Kong and a Middle Eastern financial authority.
“This partnership with Hong Kong marks a transformative milestone in redefining the global investment landscape,” said Waleed Al Awadhi, CEO of the SCA.
“We are deeply committed to empowering investors through a resilient investment ecosystem, one that drives innovation, sets new benchmarks in international best practices, and underscores the UAE’s strategic leadership as one of the top global financial centers.”
The deal comes as both the UAE and Hong Kong seek to deepen international capital market ties amid increased competition among global financial centers.
It also aligns with broader efforts to support sustainable finance and foster regulatory convergence across regions.
Earlier in the day, the Hong Kong bourse operator centered an agreement with the Abu Dhabi Securities Exchange to deepen collaboration and enhance connectivity between their capital markets.
(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Maju Samuel)
