Hong Kong is renowned as an international financial center, with a well-established banking sector, robust financial infrastructure, and a strategic location that serves as a gateway to the Chinese market and the Asia-Pacific region.

Hong Kong and UAE

Hong Kong and the United Arab Emirates (UAE) are enhancing financial cooperation through joint initiatives in the fintech space, including the development of central bank digital currencies (CBDCs).

This collaboration aims to bolster cross-border trade, optimise payment systems, and fortify virtual asset regulations.

The partnership involves concerted efforts from the central banks of both regions, with a specific focus on the advancement of CBDCs.

Notably, the UAE is making significant progress in its digital dirham project, with the initial phase of the CBDC strategy set for completion within a year.

Additionally, the mBridge project is gaining momentum, functioning as a blockchain platform that facilitates multiple CBDCs and addresses cross-border payment system limitations.

The mBridge initiative is a joint effort involving the Central Bank of the UAE, the Digital Currency Institute of the People’s Bank of China, the Hong Kong Monetary Authority (HKMA), and the Bank of Thailand, collaborating with the Bank for International Settlements (BIS) Innovation Hub.

Hong Kong's Efforts to Enhance Financial Ties with the Middle East

The visit of Hong Kong SAR Chief Executive John Lee Ka-chiu to the Middle East has sparked interest in fortifying economic and trade relations with the region.

The HKMA aims to foster collaboration with financial regulators, sovereign wealth funds, institutions, family offices, and local enterprises to create a strong foundation for long-term cooperation within the financial sector.

A bilateral working group has been formed between the HKMA and the Central Bank of the United Arab Emirates, focusing on market connectivity, CBDC development, financial infrastructure enhancement, central bank digitalisation, and virtual asset advancement.

Shared Vision and Mutual Interests of Hong Kong and the UAE

The collaboration between Hong Kong and the UAE underscores their shared vision and mutual interests in promoting financial cooperation and embracing innovative technologies.

With complementary strengths and synergies, both regions stand to benefit mutually in terms of their economies and societies.

The President of Hong Kong Monetary Authority, Eddie Yue Wai-Man, has expressed confidence in Hong Kong’s future as an international financial center.

He has outlined plans to leverage the city's strengths, expand its network, and enhance its resilience to solidify its position.

Hong Kong's Strategy for International Financial Center Growth

In an exclusive interview, Eddie Yue expressed his desire to expand Hong Kong financial collaboration with Southeast Asia.

"We also plan to visit Southeast Asia, with the main goal of meeting local central banks and major institutional investors to further explore business opportunities for Hong Kong's financial industry."

Eddie Yue conveyed to reporters his upcoming visit to the Mainland to gain insights into the latest advancements in the Mainland's financial sector.

His objective is to bolster cooperation and support high-quality economic development, harness the market influence of Hong Kong's financial institutions, and foster financial connectivity between Hong Kong, Mainland China, and the Greater Bay Area.