Hong Kong to allow lenders from Qatar, UAE to advise on local banking sector in a boost to financial ties with Middle East

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Strong economic ties between the UAE and Hong Kong have laid the foundation ‘for our banking and investment ecosystems to mutually thrive and optimise’, HKMA chief says

The countries’ inclusion in a list of constituent regions will give their banks a say in the development of Hong Kong’s banking sector

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The proposal to include Qatar, UAE and Liechtenstein banks is expected to be presented to the HKAB’s consultative council for formal discussions within this year. Photo: Roy Issa

Iris Ouyangin Shenzhen

Published: 7:40pm, 6 Jun 2023

Hong Kong is set to allow banks from Qatar, the United Arab Emirates (UAE) and Liechtenstein to advise on industry issues in the city, a step that will enhance collaboration especially between Hong Kong and the Middle East.

The Panel on Financial Affairs of Hong Kong’s Legislative Council has proposed an amendment to a segment of the Hong Kong Association of Banks (HKAB) Ordinance, which will add the three countries to a list of constituent regions that currently comprises 21 regions and territories.

The move is seen as paving the way for more cooperation between Hong Kong and the Middle East as they step up interaction in areas such as finance, technology and logistics. The proposal comes less than a week after Eddie Yue Wai-man, CEO of the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, made a three-day visit to the UAE to promote Hong Kong’s strengths as a leading international financial centre.

“The strong economic ties between the UAE and Hong Kong lay a solid foundation and practical need for our banking and investment ecosystems to mutually thrive and optimise,” Yiu said during a lunch with around 80 senior representatives from more than 50 local financial companies in Dubai on May 31.

“As we are forging ahead with our new initiatives to fortify our ecosystem and create new opportunities, Hong Kong certainly has much to offer.”

The proposal to include Qatar, UAE and Liechtenstein banks, which was published on Tuesday, is expected to be presented to the consultative council, the HKAB’s highest executive body, for formal discussions within this year. The move is being viewed as necessary because a number of banks from these countries are licensed in Hong Kong under the HKAB Ordinance. All licensed banks in the city are required to become members of HKAB, which currently has around 152 members.