After the Central Bank of UAE (CBUAE), the Saudi Central Bank (SAMA) on Thursday held discussions with Hong Kong Monetary Authority (HKMA) to enhance cooperation in the financial services sector.
The CBUAE held talks with HKMA on May 30 this year and during the meeting, both sides discussed several collaborative initiatives and agreed to strengthen cooperation in three major areas including financial infrastructure, financial market connectivity between the two jurisdictions and virtual asset regulations and developments. In addition, the two central banks facilitated discussions between their respective innovation hubs on joint fintech development initiatives and knowledge sharing efforts.
The Saudi Central Bank’s Governor Ayman Al-Sayari received the HKMA’s Chief Executive Eddie Yue, and his accompanying delegation in Riyadh.
During the meeting, the two sides discussed at length many topics that would enhance cooperation in many fields including the development of financial infrastructure, in addition to open market operations, monetary policy, and financial technology.
The two sides highlighted areas of development in supervisory technologies (Suptech), Tokenization, as well as payment infrastructure. The officials of SAMA and HKMA signed a Memorandum of Understanding (MoU) to enhance cooperation in the field of financial innovation.
The MoU aims to support joint work, strengthening knowledge exchange in financial innovation and Fintech, with a focus on new developments in the sector, in addition to the best practices, regulatory matters, policies and legislation related to financial innovation.
Financial Sector Grows
Al-Sayari said that the financial sector in Saudi Arabia was witnessing growth, with the entry of new participants from investors and companies giving added value.
“This resulted in the appearance of new and creative financial services, which came in the interest of supporting diversification of the Saudi economy and enhancing the Kingdom’s position to become a global hub for Fintech,” Al-Sayari said.
He said that HKMA was an important partner for SAMA, indicating that the MoU between the two sides supports the integration of international efforts in the field.
Eddie Yue said that SAMA was a valuable partner for cooperation and knowledge exchange and hoped that the MoU will contribute to enhancing cooperation and strengthening its aspects in the field of financial innovation.
There will be a large scope for participants in the market from both sides in a way that will enhance interdependence between them, Yue added.