Abu Dhabi Global Market forms strategic co-operation with Hainan Provincial Government on financial development and growth of Hainan Free Trade ZoneADGM China Office 31/03/2019
- First of such landmark collaboration between China and the UAE
The Hainan Provincial Government and Abu Dhabi Global Market (ADGM) are pleased to sign a Memorandum of Understanding (MoU) to further boost the economic and financial collaboration between China and the United Arab Emirates (UAE) via Hainan Free TradeZone and ADGM’s international financial centre and financial free zone. Dovetailing well with the2019 Boao Forum for Asia Annual Conference, this is the first such financial and economic cooperation between Hainan Provincial Government of the People’s Republic of China and the Middle East region.
The MoU was signed by Mr Chen Yang, Director-General of the Hainan Provincial Financial Supervision and Regulation Bureau and Mr Calvin Fu, China Chief Representative of ADGM, and witnessed by H.E Liu Cigui, Secretary of Hainan Provincial Committee of the Central Party Committee of China/Chairman of the Standing Committee of Hainan Provincial People’s Congress and Mr Richard Teng, CEO of Financial Services Regulatory Authority of ADGM. The ceremony took place at the Boao Forum for Asia, Hainan, China on 28 March 2019.
The MoU establishes a formal platform for both Authorities to work closely in key aspects including, the opening up and development of the financial sector within the Hainan Free Trade Zone, the development of the financial and commercial regulatory infrastructure and framework in the free trade zone, joint investment and financing initiatives between the two countries in support of the Belt and Road Initiative, legislative and dispute resolution support from ADGM, development of exchanges in the free trade zone and enable cross-listing of financial products, facilitate greater business opportunities and set-up between Hainan and the UAE.
H.E Liu Cigui, Secretary of Hainan Provincial Committee of the Central Party Committee of China, said, "This cooperation with ADGM is a significant milestone and progress in our foreign cooperation and strengthening of international relations. To establish a world-class free trade zone, we will be enhancing our business infrastructure and environment, advocating an international legal jurisdiction and framework to strengthen the competitiveness of Hainan Free Trade Zone and contributing towards the economic growth of Hainan Province.”
Mr Richard Teng, CEO of Financial Services Regulatory Authority of ADGM said, “This agreement is a further testament of the strategic partnership and strong alliance established between leaders of the UAE and China. Hainan Province has been designated as a free trade zone as well as China’s first free port and will witness significant development in the coming decades. We look forward to working closely with the Hainan Provincial Government to support greater investment, capital and trade flows. Together with the Hainan Provincial Financial Supervision Bureau, we will also work tirelessly to enable mutual growth and development of the financial services industry. Our partnership will create more business and investment opportunities connecting China and the Middle East and Africa region.”
China and the United Arab Emirates (UAE) have maintained a long cultural and economic partnership for many decades. The UAE is China’s top investment destination in this region and China is the biggest trade partner of the UAE, making up 14.7% of the country’s total foreign trade in 2017. A report on the non-oil foreign trade exchange between the UAE and China published by the UAE Ministry of Economy states that the value of trade between the two nations increased by 15.1% to $53.3 billion in 2017. The UAE’s trade with free zones accounts for 52% of the total foreign trade with China, according to the Ministry.
With the launch of the Silk Road Economic Belt and the Belt and Road initiative in 2013, the UAE’s geographical advantage and robust economic policy fit well into China’s growth path and long-term blueprint.
About Abu Dhabi Global Market
Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business on 21 October 2015. Established by a UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi’s position as a global hub for business and finance and serves as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world.
ADGM’s strategy is anchored by Abu Dhabi’s key strengths including private banking, wealth management, asset management and financial innovation. Comprising three independent authorities: ADGM Courts, the Financial Services Regulatory Authority and the Registration Authority, ADGM as an IFC governs Al Maryah Island which is a designated financial free zone. It enables registered financial institutions, companies and entities to operate, innovate and succeed within an international regulatory framework based on Common Law.
Since its inception, ADGM has been awarded the “Financial Centre of the Year (MENA)” for three consecutive years for its initiatives and contributions to the financial and capital markets industry in the region.*
For more details of ADGM, please visit www.adgm.com or follow us on Twitter: @adglobalmarket and Linkedin: ADGM
* Source : The Global Investor Middle East and North Africa (MENA) Awards