Abu Dhabi signs MOUs with Labuan to support growth in financial services
Abu Dhabi Global Market (ADGM), the financial centre of Abu Dhabi, has partnered with Labuan International Business and Financial Centre (Labuan IBFC) and Labuan Financial Services Authority (Labuan FSA) to support the growth and development in both financial ecosystems in Labuan, Malaysia and Abu Dhabi.
The partnerships are aimed at fostering greater collaboration on joint financial activities and regulatory practice, and two memorandums of understanding (MoUs) have been signed between the Labuan IBFC Inc Sdn Bhd and ADMG, and the Labuan FSA and the financial services regulatory authority (FSRA) of ADGM.
Labuan IBFC Inc Sdn Bhd is the organisation entrusted with market development for Labuan IBFC.
The MOUs established a strategic platform for Labuan FSA and the FSRA to better understand and share pertinent information on banking, financial services, securities legislation and regulations in each market.
ADGM and Labuan IBFC will explore mutually beneficial projects to facilitate long term opportunities in infrastructure financing, new innovations in areas of Fintech and green finance.
The FSRA and Labuan FSA will focus on regulatory cooperation for the supervision of financial institutions, as well as, the joint collaboration and exchange of information as well as support cross border activities in the Abu Dhabi and Malaysian financial sectors.
Datuk Ahmad Hizzad Baharuddin, director-general of Labuan FSA said: “The MoU signifies an important milestone in international cooperation between the two regulatory authorities. It will pave the way for mutual assistance and sharing of supervisory information between Labuan FSA and ADGM-FSRA to strengthen the supervision of cross-border operations of financial institutions under their purview. I believe the bilateral relationship will play a key role in fostering regional financial stability and sustainable growth”.
Richard Teng, CEO at the FSRA of ADGM, added: “We are pleased to continue nurturing this strategic relationship with our Asian partners of the Labuan IBFC and Labuan FSA. As an international financial centre, ADGM aims to further bolster financial services activities, facilitate investment flows and encourage business innovation.
“This agreement paves the way for more joint efforts and initiatives and we look forward to working closely with the team to enhance Fintech developments, innovation and explore possible cross-border investment activities to better serve our markets and beyond. Together, we can work closely in advocating a well-regulated environment and promoting high regulatory standards and practice among our business communities in the UAE and Asia.”