Abu Dhabi Global Market (ADGM), the UAE capital’s financial free zone, has signed a deal with the Shanghai authorities to encourage further collaboration between the two cities.
The memorandum of understanding with the Shanghai Free Trade Zone Authority (SHFTZA) is designed to “foster collaboration and facilitate business developments in their respective markets”, a statement from ADGM said.
Richard Teng, the chief executive of ADGM’s financial services regulatory authority who signed the understanding with Chinese trade officials, said: “We are pleased to enter this MOU with our Shanghai partner. Both SHFTZA and ADGM are established to support stakeholders in global expansion and tap growth opportunities in our respective regions.
“We will work together in bolstering financial services activities, facilitating investment flows and encouraging business innovation in our respective markets. The MOU marks another milestone between China and Abu Dhabi in strengthening economic cooperation. We look forward to working with SHFTZA and their team to advance the financial developments of our markets.”
SHFTZA was set up by the Chinese government in 2013 to target investment management, trade facilitation, financial services and the transformation of government functions.
It oversees four customs-supervised areas in the greater Shanghai area. Shanghai is China’s main financial and commercial hub.
ADGM, which declared itself “open for business” last year under Ahmed Al Sayegh, the chairman, is based on Al Maryah Island in Abu Dhabi.
It aims to focus initially on wealth and asset management and private banking as part of its strategy of building a hub for the financial industry in the UAE capital.
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