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this united arab emiratesThe central bank pledged on Tuesday to expand cooperation with its Hong Kong counterpart, furthering the country’s growing ties with China.
UAE central bank and Hong Kong Monetary Authority meet in Abu Dhabi. The two said they would form a “joint working group” and agreed to strengthen cooperation on financial infrastructure, financial market connectivity between the UAE and Hong Kong, and regulation of virtual assets. According to a press release from the UAE Central Bank, the UAE Central Bank and the Hong Kong Monetary Authority also said they facilitated discussions between the UAE Innovation Hub and the Hong Kong Innovation Hub@HK on fintech and knowledge exchange.
Innovation Hub@HK was established by the Hong Kong government in 2022 to showcase the city’s research related to science, technology and more. The Innovation Center in the UAE is a partnership with Google to train young people in technology and was launched in 2018.
The two central banks also held meetings on Monday with several banks with operations in the United Arab Emirates and Hong Kong. According to the outlet, First Abu Dhabi Bank, Abu Dhabi Islamic Bank, Emirates National Bank, Industrial and Commercial Bank of China, Bank of China, HSBC, Standard Chartered, Bank of China and Citibank are all involved.
Hong Kong is a special administrative region of China. Beijing has been tightening its grip on the city’s affairs in recent years.
Why it matters: The meeting comes amid growing relations between the UAE and China. Below is a list of some notable recent developments involving UAE and Chinese entities:
- In March, China bought 65,000 tonnes of LNG from the UAE in yuan. This is the first time China has used yuan to conduct energy transactions with the UAE.
- In April, China International Capital Corporation told Bloomberg that it planned to expand in the UAE and Saudi Arabia. The company is engaged in investment banking, wealth management and other related services.
- this UAE signs multiple nuclear energy deals with China Cooperation agreement in May.
- Dubai-based logistics giant DP World signed agreements with two Chinese ports on the auto industry chain in May.
- The UAE and Kuwait became dialogue partners in the China-led Shanghai Cooperation Organization in May.
The discussion between the Central Bank of the United Arab Emirates and Hongjing on virtual assets is also worthy of attention. The UAE established the Virtual Assets Regulatory Authority in 2022 to regulate cryptocurrencies and related technologies. UAE officials have repeatedly said they want to attract more cryptocurrency companies to Abu Dhabi and Dubai even after the cryptocurrency crash that began in 2021.
learn more: China’s Influence in the Gulf This is mostly about economics and energy and could be a future concern for the United States, Dr. Karen E. Young wrote in a memo to Al-Monitor PRO earlier this month.
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