UAE, Hong Kong Ink Deal To Expand Cross-border Debt Issuance And Investment 

RIYADH: The UAE and Hong Kong are set to deepen ties in cross-border debt securities issuance and investment after their central banks signed a memorandum of understanding to enhance connectivity between their financial markets. 

The Central Bank of the UAE and the Hong Kong Monetary Authority formalized the agreement during a bilateral meeting in Hong Kong on Dec. 20, targeting closer integration of their debt capital markets and related financial infrastructures.  

The MoU, signed by Khaled Mohamed Balama, governor of the CBUAE, and Eddie Yue, chief executive of the HKMA, is expected to streamline debt issuance, trading, and settlement between Asia and the Middle East.  

The collaboration aligns with the UAE’s vision to become a leading link between the Middle East and North African region and global financial markets and Hong Kong’s ambitions to strengthen its status as a bridge to international capital. 

“This initiative will help the UAE become the gateway for issuers and investors in the MENA region to access the China and Asian debt markets, while also allowing Chinese and Asian issuers and investors to gain direct access to the MENA debt market through the UAE,” CBUAE Governor Khaled Mohamed Balama said in a statement. 

He added: “We aim at unlocking the potential of the two debt capital markets to allow seamless and cost-effective cross-border debt securities issuance, trading, investment, settlement as well as collateral management.” 

The pact follows an initial meeting in Abu Dhabi in May, where the two sides began exploring collaboration in financial infrastructure development and investment opportunities in the Middle East and North Africa region and mainland China. 

Eddie Yue, chief executive of the HKMA, said the agreement underscores Hong Kong’s role as a financial hub. “The MoU will enhance mutual cooperation and the exchange of expertise in debt capital markets, reinforcing Hong Kong’s position as a gateway to the Renminbi and international debt markets,” Yue said. 

He said there was significant potential for the financial sectors of both regions to explore new business opportunities. “We look forward to our continued collaboration with the CBUAE to strengthen investment and financial market connectivity between the Middle East and Asia.” 

Key attendees at the meeting included Saif Humaid Al-Dhaheri, assistant governor for banking operations and support services at the CBUAE; Stanley Chan, president of the Central Moneymarkets Unit at the HKMA, and other senior officials. 

The move aims to unlock new business opportunities for issuers and investors while advancing market connectivity between the two jurisdictions.