DIFC deals with HKMA in islamic finance development

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The Dubai International Financial Centre Authority (DIFCA) has signed a Memorandum of Understanding (MoU) with the Hong Kong Monetary Authority (HKMA) in a bid to develop Sharia-compliant financial products in both countries.

The MoU was signed on May 20 and sets out a framework for the sharing of information in the areas of development of Islamic finance in the Dubai International Financial Centre (DIFC) and Hong Kong, including advice on the development of legal and regulatory frameworks, and the facilitation of dialogue between and with Sharia Boards and Sharia Scholars.

The agreement also calls for 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.
Other areas of cooperation include development of payment systems, technical co-operation and also joint studies, particularly with regard to cross-border financial activities.

Nasser Al Shaali, CEO at DIFC Authority, said the agreement would enable both groups to find solutions for critical issues by promoting shared expertise and industr consultation.

“I am confident this framework of co-operation will promote Islamic financial activities between DIFC and Hong Kong particularly in the trading of Sukuk and other Sharia-compliant instruments,” he said in a statement carried on news agency Wam on Monday.

The HKMA is Hong Kong's government authority responsible for maintaining monetary and banking stability, managing Hong Kong's official reserves and developing the country's financial infrastructure.

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