The Dubai Financial Services Authority (DFSA) and Hong Kong’s Securities and Futures Commission (SFC) have entered into a memorandum of understanding (MoU).

This document aims to enhance collaboration in the supervision of managers of collective investment schemes across their respective jurisdictions. The MoU focuses on strengthening communication, sharing information, and harmonizing regulatory practices.

During the 10th Belt and Road Summit in Hong Kong, this agreement was formally signed as part of an official ceremony attended by representatives from both authorities and regulators.

Enhanced Information Exchange Mechanism

The framework establishes a structured approach to cooperation, encompassing governance standards, compliance requirements, and supervisory practices. It builds on collaborative efforts undertaken over the past year, including high-level meetings and a roundtable with asset managers based in Hong Kong.

According to officials from the DFSA, this initiative is designed to provide clear regulatory expectations for firms engaging in cross-border investment or advisory activities between Dubai and Hong Kong.

The SFC’s representatives emphasized that the closer partnership with the DFSA is part of broader efforts to deepen regional financial connectivity. They noted that Hong Kong’s role as a financial hub along the China-Middle East corridor makes regulatory cooperation crucial for maintaining cross-border investment activities.

This agreement reflects a trend among financial regulators in Asia and the Middle East, aimed at fostering stronger cross-border connections, particularly in areas related to international asset management and investment services.