UAE and Hong Kong CBs convene in Abu Dhabi to deepen financial ties

The Central Bank of the United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) convened their third meeting in Abu Dhabi, chaired by Khaled Mohamed Balama, Governor of the CBUAE, and Eddie Yue, Chief Executive of the HKMA.

The meeting aims to further strengthen collaboration and connectivity between the financial sectors of both jurisdictions, reflecting the depth of their institutional partnership and shared regulatory vision.

Building on the progress achieved from the second meeting held in Hong Kong in December 2024, the CBUAE and the HKMA conducted in-depth discussions covering several key areas. These included cross-border debt capital market connectivity; developments in digital assets, tokenisation, and central bank digital currency; as well as the development of regulatory frameworks for stablecoins; and supply chain financing.

The meeting was attended by Assistant Governors and senior officials from both institutions, highlighting their shared commitment to advancing financial and technical cooperation to support the sector’s sustainable development and to promote institutional coordination at the strategic and operational levels.

The CBUAE has formally joined the Central Moneymarkets Unit (CMU), Hong Kong’s core central securities depository for debt securities, following the signing of the Memorandum of Understanding during the second meeting to establish debt capital market and the related financial market infrastructure connectivity.

This provides the CBUAE and investors in the UAE direct and cost-effective access to Chinese Mainland’s capital markets and financial assets, leveraging Hong Kong’s established financial infrastructure. It represents a major step forward in advancing market connectivity and deepening financial integration between the two regions.

“Our collaboration with the Hong Kong Monetary Authority reflects a shared commitment to strengthening cross‑border financial market connectivity and international partnership,” Balama said.

He added that the CBUAE’s membership in the Central Moneymarkets Unit enables access to Asian capital market and deeper engagement with other global financial centres, which supports diversifying investment opportunities for market participants in the UAE, and reinforcing the country’s role as a leading international capital market hub.

Yue stated, “I am pleased to see the progress achieved to date in concretising our debt capital market connectivity, and am delighted to welcome the CBUAE as a member of the CMU. This underscores Hong Kong’s position as a leading offshore Renminbi business hub, and a premier gateway for international investors to tap into the broader China and Asia markets.”

He added that the cooperation between the two central banks demonstrates a clear vision for mutual growth and innovation.

Meanwhile IHC, Sirius International Holding, and First Abu Dhabi Bank (FAB) announced that the Central Bank of the UAE (CBUAE) has approved the UAE dirham-backed stablecoin DDSC to go live, marking a significant milestone in the UAE’s regulated digital finance landscape.

DDSC will operate on ADI Chain, an institutional Layer-2 blockchain developed by the Abu Dhabi-based ADI Foundation.

WAM