The Monetary Authority and the Dubai International Financial Centre Authority have signed a memorandum of understanding to bolster co-operation in the development of Sharia-compliant financial products and the financial infrastructure in the two jurisdictions.

The authority's Deputy Chief Executive Eddie Yue said the pact's signing marks an important milestone in co-operation between the two organisations.

"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," Mr Yue said.

Cooperation details

The document sets out the framework agreed between the two organisations regarding co-operation, communication and information sharing in the following areas:

* development of Islamic finance in the Dubai International Financial Centre and Hong Kong, including exchanging advice on the development of legal and regulatory frameworks and standards' standardisation and harmonisation;

* promoting training and educational programs and the facilitating dialogue between and with Sharia Boards and Sharia Scholars;

* explorating 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;

* developing 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 regarding cross-border financial activities; and

* joint workshops, seminars and conferences in support of the above activities.