24 May 2023Analysis

Labuan IBFC renews agreement with Qatar Financial Centre

Labuan IBFC Incorporated, the official marketing agency for the Labuan International Business and Financial Centre (Labuan IBFC) has renewed its memorandum of understanding (MoU) with the Qatar Financial Centre Authority (QFCA) which is responsible for the development and promotion of the Qatar Financial Centre (QFC).

The non-binding MoU, which was signed at the sidelines of the Qatar Economic Forum, is to be valid for a period of three years.

Labuan IBFC and QFCA previously signed a MoU in 2021. During this period, both signatories collaborated on market development and promotional initiatives. Following the success of these programmes, both parties decided to renew the MoU to enable a further exploration of mutual benefits.

The renewed MoU, which was signed by Datuk Iskandar Mohd Nuli, executive chairman / chuief executive of Labuan IBFC and Yousuf Mohamed Al-Jaida, chief executive of QFCA, signifies a commitment towards the identification, and subsequent collaboration on shared market development activities. Both financial centres agreed to cooperate on Islamic finance, digital finance, capital market and captive insurance, which are also the key focus areas for Labuan IBFC as outlined in the Labuan IBFC 2022-2026 Strategic Roadmap.

Datuk Iskandar Mohd Nuli said: “This strategic partnership will further generate greater exposure and awareness of Labuan IBFC in the MENA region. Labuan IBFC Inc. is confident that both financial centres' shared commonality comprising a sound legal framework and adherence to global financial standards will serve as an ideal platform for intermediaries looking to establish their presence in both the Asian and MENA regions. We look forward to working closely with QFCA to further deepen our collaboration in a meaningful manner.”

Yousuf Mohamed Al-Jaida, chief executive, QFCA, added: “We are delighted to renew our partnership with Labuan IBFC Inc. and embark on further collaborations that will allow both financial centres to expand into strategic markets.” He added that Labuan IBFC offers a strategic platform to expand into the flourishing Asian market, which aligns with Qatar Financial Centre's (QFC) strategy of attracting international firms and creating pathways for QFC firms to expand globally.

Strategically located in Asia and the Middle East, both Labuan IBFC and QFC play a key role in expediating regional economic growth. A strategic relationship between both financial centres will serve as a platform to expand the marketing of solutions and services especially Islamic products and enhance their acceptability in both regions. It will also serve to facilitate the growth of fintech and its supporting ecosystems, thus easing entry into new markets as well as expanding and providing mutual recognition of both jurisdictions and their intermediaries.