UAE central bank joins Hong Kong's debt platform, expands market access
The Central Bank of the United Arab Emirates (CBUAE) has formally joined the Central Moneymarkets Unit (CMU), Hong Kong's central securities depository for debt securities. This move, discussed at their third meeting, deepens financial cooperation and provides UAE investors direct access to Chinese Mainland capital markets.
Gateway to Asian capital markets
The Central Bank of the United Arab Emirates has formally joined the Central Moneymarkets Unit (CMU), Hong Kong's core central securities depository for debt securities.
This membership provides the CBUAE and investors in the United Arab Emirates direct and cost-effective access to Chinese Mainland's capital markets and financial assets, leveraging Hong Kong's established financial infrastructure.
CBUAE Governor H.E. Khaled Mohamed Balama emphasized that this collaboration reflects a shared commitment to strengthening cross-border financial market connectivity and international partnership.
He noted that CMU membership supports diversifying investment opportunities for market participants in the UAE, reinforcing the country's role as a leading international capital market hub.
Digital assets and stablecoin regulation
The third meeting in Abu Dhabi, held on February 11, built on previous progress from December 2024, with in-depth discussions covering digital assets, tokenisation, and central bank digital currency developments.
Regulatory frameworks for stablecoins and supply chain financing were also key topics.
HKMA Chief Executive Mr Eddie Yue welcomed the CBUAE's CMU membership, underscoring Hong Kong's position as a leading offshore Renminbi business hub and a premier gateway for international investors to tap into broader China and Asia markets.
He expressed anticipation for continued collaboration on these key initiatives.
Strategic alignment for global finance
The CBUAE's CMU membership offers concrete market access for UAE investors, strengthening the Middle East-Asia financial axis.
Discussions on digital assets and stablecoins highlight a proactive approach to future financial infrastructure.
This strategic partnership is crucial for building a more diversified and resilient global financial system.