UAE and Hong Kong Sign Deals on Financial Cooperation

The Securities and Futures Commission (SFC) and the Securities and the UAE’s Commodities Authority (SCA) have concluded a Memorandum of Understanding (MoU) to expand cross-border market access for public funds under a Mutual Recognition of Funds (MRF) arrangement, marking a new milestone in advancing Hong Kong-UAE market connectivity. 

This MoU has been concluded between the SFC and the SCA, in light of continued global financial market growth and increasing cross-border activity in asset management and the offering and distribution of collective investment schemes.

In the presence of Paul Chan, Financial Secretary of the HKSAR Government, Mohammad Alhawi, Undersecretary of the UAE Ministry of Investment, Dr Kelvin Wong, Chairman of the SFC, and Dr Jean Fares, Chief Executive Officer (CEO) of Investopia, the MoU was signed into effect by Ms Julia Leung, CEO of the SFC, and Waleed Saeed Abdul Salam Al Awadhi, CEO of the SCA, during the Investopia Global – Hong Kong event on Wednesday.

The MoU expands the city’s public fund distribution network into the Middle East, by allowing the direct offering of unlisted foreign funds to retail investors in the UAE for the first time (Notes 1 and 2). This marks Hong Kong’s first MRF arrangement with a Middle East market, and also the UAE’s first with a jurisdiction outside the region.

Significant Collaboration

In her comments, Julia Leung said that this significant collaboration with the SCA has opened a new chapter in Hong Kong-UAE regulatory cooperation, not only reaffirming the city’s standing as a preferred fund domicile, but also highlighting its role as a premier gateway between Chinese Mainland and the Middle East, especially in a fast-evolving global landscape.

Waleed Saeed Abdul Salam Al Awadhi said that this partnership with Hong Kong marks a transformative milestone in redefining the global investment landscape, unlocking unprecedented opportunities for investors to engage with one of the world’s most advanced financial centres.

“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 centres,” Al Awadhi added.”

To further their collaborative efforts, the SFC and the SCA had a high-level bilateral meeting on September 16 where both sides reaffirmed their shared vision to enhance mutual market access and investor protection as well as to foster financial innovation.

ADX Sign Deal With HKEX

At the same event, the Abu Dhabi Securities Exchange (ADX), one of the fastest-growing and leading exchanges in the Middle East, signed a Memorandum of Understanding (MOU) with Hong Kong Exchanges and Clearing Limited (HKEX) to deepen the cooperation between the UAE and Hong Kong capital markets. The MOU builds on the relationship between the two exchanges stretching back to the signing of their first MOU in March 2007.

The MOU was signed in Hong Kong in the presence of senior officials from both sides underlining the pivotal role of this partnership in strengthening financial ties between the two regions.

The MOU seeks to expand ADX’s international presence and advance global connectivity by facilitating mutual market access and supporting the co-development of products and services that meet evolving investor needs. This development demonstrates the ADX’s ongoing efforts to deepen relationships with global markets.