HK, Dubai move closer on Islamic financing (hktdc.com)


	DFSA Chief Executive David Knott (left) and SFC Chief Executive Officer Martin Wheatly sign the Memorandum of Understanding

Hong Kong edged closer as a hub for Islamic financing with the recent signing of an Islamic finance pact between Hong Kong’s Securities & Futures Commission and the Dubai Financial Services Authority (DFSA).

The Memorandum of Understanding (MOU) calls for mutual cooperation on capacity building and human capital development in Islamic finance, as well as the promotion and development of their respective Islamic market segments.

Under the MOU, both parties will examine the possibility of establishing a framework for the mutual recognition of their regulatory regimes on Islamic funds to facilitate cross-border marketing and distribution of Islamic funds.

SFC’s Chief Executive Officer. Martin Wheatly, said he was delighted that the MOU had established a platform for mutual cooperation. “This will further enhance Hong Kong’s position as an international financial centre and enable Hong Kong to play a more active role in the development of Islamic finance.”

DFSA’s Chief Executive, David Knott, said the MOU would pave the way for future initiatives of mutual benefit to Hong Kong and Dubai. The DFSA is the independent regulator of financial services providers, financial services and products related to banking, securities, Islamic finance, asset management and insurance in the Dubai International Financial Centre.

Collaborative effort

The SFC, which regulates Hong Kong’s securities and futures markets, has been working with fund management companies and financial houses to develop Islamic financial products in the city, supporting the Hong Kong Government’s initiative to develop the city as an Islamic finance centre in Asia. Chief Executive Donald Tsang in his annual policy address in October 2007 said he hopes to have a planned Islamic bond market in place as soon as possible.

In late 2007, SFC approved the Hang Seng Bank’s Islamic China Index Fund for sale to retail investors. The fund will invest mainly in the constituents of the Dow Jones Islamic Market China/Hong Kong Titans Index, comprising 30 largest Shariah-compliant stocks of companies doing business in the mainland and Hong Kong and traded on the Hong Kong Stock Exchange. (First Islam fund opens financial gateway)

The Hong Kong Trade Development Council (HKTDC) earlier this year launched a series of initiatives in the Middle East inviting their investors to extend and diversify their global reach through Hong Kong. The week-long business services sector trip covered the Saudi Arabian capital of Riyadh, Kuwait, Abu Dhabi and Dubai in the United Arab Emirates. (World-class services a platform for growth)