Key Points
- UAE central bank joins Hong Kong’s Central Moneymarkets Unit (CMU)
- Move enables direct access to Chinese capital markets for UAE investors
- Strengthens cross-border financial connectivity between Middle East and Asia
- Part of a broader effort to diversify investment and deepen economic ties
ISLAMABAD: The United Arab Emirates has joined Hong Kong’s debt securities network, enabling Emirati investors direct access to Chinese financial assets through Hong Kong’s established infrastructure, the Hong Kong Monetary Authority said in a statement.
The UAE’s Central Bank has become a member of the Central Moneymarkets Unit (CMU), Hong Kong’s core securities depository for debt instruments.
This membership enables UAE-based investors to invest efficiently in mainland China’s capital markets, supporting portfolio diversification and cross-border investment flows.
Officials described the move as a significant step in strengthening financial connectivity between the Middle East and Asia.
Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said the partnership enhances investment opportunities for UAE market participants and reinforces the country’s role as a leading international financial hub.
Analysts note that the expansion of financial linkages reflects growing regional interest in integrating Middle Eastern capital with Asia’s rapidly expanding markets.
Membership in the CMU also builds on ongoing UAE-Hong Kong cooperation, including work on digital asset frameworks, stablecoin regulations, central bank digital currency projects, and supply chain financing.
The CMU can be thought of as a secure central platform where bonds and other debt securities are stored, traded, and settled electronically.
It operates like a digital ledger for debt instruments, ensuring that transactions are accurately recorded, ownership is clear, and transfers between buyers and sellers happen efficiently.
This system reduces costs, speeds up trading, and provides transparency for all market participants.
