Abu Dhabi Global Market (ADGM) and Central Bank of Bahrain (CBB) have signed a memorandum of understanding (MoU) to “promote and facilitate innovation” in financial services across the United Arab Emirates and the Kingdom of Bahrain.
The agreement will allow both authorities to co-operate on initiatives and regulatory efforts to develop both jurisdictions’ financial sectors.
Under the deal, the CBB and ADGM will exchange relevant information and collaborate on the supervision of fintech companies in the respective jurisdiction.
Improve interaction
CBB governor Rasheed Al Maraj said: “It gives us great pleasure to continue developing the framework of collaboration with ADGM in the fintech and innovation sphere, and this MoU represents the important role regulators play in creating an environment in which this sphere can progress to the benefit of innovative institutions in both jurisdictions.”
Both CBB and ADGM are members of the recently established Global Financial Innovation Network, a group of 12 regulators that seek to improve interaction between firms and regulators and create a framework for co-operation between regulators on “financial innovation, stability, integrity, customer outcomes and inclusion”.
Significant development
Richard Teng, chief executive, Financial Services Regulatory Authority at ADGM, said: “The strategic partnership between ADGM and the CBB marks a significant development for the financial industry and allows more cross-border fintech business opportunities through closer collaboration, partnerships and the exchange of ideas.
“Fintech and digital transformation are fundamental to the Abu Dhabi and Bahrain business communities. As an [international finance corporation] and fintech hub in the Middle East and North Africa, ADGM looks forward to working closely with like-minded authorities and partners to champion positive advancements in our markets and for our economies.”
