The Hong Kong Monetary Authority (HKMA) and the Dubai
International Financial Centre Authority (DIFC Authority) signed a
Memorandum of Understanding (MOU) on 20 May 2008 aimed at fostering
co-operation in the development of Sharia-compliant financial
products and the financial infrastructures in their respective
jurisdictions.
The MOU sets out the framework agreed between the HKMA and DIFC
Authority regarding the co-operation, communication and sharing of
information in the following areas:
- Development of Islamic finance in the Dubai International
Financial Centre (DIFC) and Hong Kong, including the exchange of
advice on the development of legal and regulatory frameworks and
the standardisation and harmonisation of standards
- Promotion of training and educational programs and the
facilitation of dialogue between and with Sharia Boards and Sharia
Scholars
- Exploration of ways to foster Islamic financial activities on a
cross-border scale between the DIFC and Hong Kong, such as trading
of sukuk and other Sharia compliant financial instruments
- Development of payment systems
- Technical co-operation and linkages between each party's
financial infrastructure developments
- Joint studies on the extent to which each party's financial
infrastructure can support financial infrastructure development in
the other party's jurisdiction, particularly with regard to
cross-border financial activities
- Joint workshops, seminars and conferences in support of the
activities referred to above
"The signing of the MOU between the HKMA and the DIFC Authority
marks an important milestone in co-operation between the two
organisations," said Mr Eddie Yue, Deputy Chief Executive of the
HKMA. "I am confident that the MOU will enhance the co-operation
between the HKMA and the DIFC Authority, particularly in the
development of Islamic finance, which in turn will benefit Hong
Kong as an international financial centre."
Nasser Al Shaali, CEO, DIFC Authority said: "As the global
Islamic finance industry enters a new phase of dynamism, this MOU
between the DIFC Authority and the HKMA will contribute to
vitalising this sector in both our markets. It will enable us to
find innovative solutions for critical issues by promoting shared
expertise and consultation with industry. I am also confident this
framework of co-operation will promote Islamic financial activities
between DIFC and Hong Kong particularly in the trading of sukuks
and other Sharia-compliant instruments. Furthermore, this MOU gives
us an opportunity to enhance co-operation between our financial
infrastructures, in particular the payment systems, of the two
regions."
The fastest-growing financial centre in the world, the DIFC is
home to over 600 companies that include the world's leading
financial services companies and banks. Over the last four years,
DIFC has emerged as a gateway to the growing financial market in
the Middle East region and a key player in the global financial
industry. The DIFC offers its member institutions incentives such
as 100 per cent foreign ownership, zero tax on income and profits
and no restrictions on foreign exchange. Companies also benefit
from modern infrastructure, operational support and business
continuity facilities of uncompromisingly high standards.
For further enquiries, please contact:
Hong Kong Monetary
Authority
Peggy Lo, Manager (Press), at +852 2878 1687 or
Hing-fung Wong, Manager (Press), at +852 2878 1802
Dubai International
Financial Centre Authority
Amira Abdulla Shaima Al Zarouni
Tel: +971 4 362 2433 Tel: +971 4 362 2432
E-mail: amira.abdulla@difc.ae
E-mail: shaima.alzarouni@difc.ae
Hong Kong Monetary Authority
Dubai International Financial Centre Authority
26 May 2008
Background
information about the HKMA and DIFC
The HKMA
The HKMA is Hong Kong's government authority responsible for
maintaining monetary and banking stability, managing Hong Kong's
official reserves and developing Hong Kong's financial
infrastructure. The HKMA is part of the Hong Kong Special
Administrative Region Government operating with a high degree of
autonomy, complemented by a high degree of accountability and
transparency.
The DIFC
The Dubai International Financial Centre (DIFC) is an onshore
hub for global finance. It bridges the time gap between the
financial centres of Hong Kong and London and services a region
with the largest untapped emerging market for financial services.
In just three years, over 600 firms have registered at the DIFC.
They operate in an open environment complemented with world-class
regulations and standards. The DIFC offers its member institutions
incentives such as 100 per cent foreign ownership, zero tax on
income and profits and no restrictions on foreign exchange. In
addition their business benefits from modern infrastructure,
operational support and business continuity facilities of
uncompromisingly high standards.
The photo caption is from left to right as
follows:
- Sandy Shipton, Executive Director Wealth Management, DIFC
Authority
- Abdulla Al Awar, Managing Director, DIFC Authority
- Eddie Yue, Deputy Chief Executive, HKMA
- Dr Nasser Saidi, Chief Economist, DIFC Authority
- Dean Farris, Chief Legal Officer, DIFC Authority
- Chirag Shah, Director-Strategy & Business Development, DIFC
Authority
