Following the state visit by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to China, Abu Dhabi Global Market (ADGM) and Beijing Municipal Bureau of Local Financial Regulation (the Bureau) have announced that they entreed an important cooperation to accelerate investment and financial development between Beijing and Abu Dhabi as part of the "UAE-China Comprehensive Strategic Partnership" led by the state leaders of both countries.
The agreement was signed by Richard Teng, Chief Executive Officer of the Financial Services Regulatory Authority (FSRA) of ADGM, and Huo Xuewen, Director of the and Beijing Municipal Bureau of Local Financial Regulation, in Beijing.
The Memorandum of Understanding sets the framework for ADGM and Beijing Municipal Bureau to support leading financial institutions of key sectors including investment management, wealth management, financial technology, and sustainable finance (green finance) of Abu Dhabi and the Middle East region seeking to explore and establish their businesses in Beijing, the capital of the People’s Republic of China.
Similarly, ADGM and the Bureau aim to introduce more technology and financial innovations and high-end infrastructure and heavy industries from Beijing to Abu Dhabi market. Among the key initiatives, ADGM and the Bureau aim to increase cooperation and accelerate joint development in areas of financial technology and wealth management.
Mr. Teng said, "It has been a very fulfilling week for the UAE-China relations and achieving new milestones in the Belt-and-Road initiative by the various Abu Dhabi and China key institutions. ADGM has built a close understanding and working partnership with the Beijing Municipal Bureau since we began operations in 2015. We share a common ambition in fostering a sustainable and conducive financial ecosystem that supports the development of the institutions and companies in our economies and along the MENA region. As regulators, the Beijing Municipal Bureau and ADGM are aligned on the importance of maintaining a robust and well-regulated marketplace to attract more investments and growth. We are excited about the prospects of this cooperation and look forward to facilitating influx of businesses soon."
For his part, Xuewen said, "The opening of our financial market is an anticipated progress in the development of China's financial industry. As an international trade and business centre, Beijing will tap on its country’s forte as a leading financial management centre and leverage the opening up of its financial industry to play a more active and international role. We will bring into play the advantages of international financial institutions, foster financial openness, attract more foreign financial institutions, and further develop foreign finance in our marketplace.
Together, we will actively promote the financial cooperation between China and the UAE, support the development and growth of ADGM China office, and augment the "One Belt and One Road" financial market development and investment cooperation between the capitals of the country."
In the following months, ADGM and Beijing Municipal Bureau of Local Financial Regulation will initiate a structured framework and working team to implement the details of the partnership and support the mechanism of the cooperation appropriately.
As part of the UAE-China state visit, ADGM has also established new partnerships and agreements with the National Development and Reform Commission (NDRC), China National Nuclear Corporation (CNNC), China Everbright Group and OneConnect Financial Technology (a subsidiary of Ping An group) to foster greater cross-border opportunities and developments along the Belt-and-Road initiative.