Chief executive of the Dubai Financial Services Authority, Ian Johnston, speaks to China Daily during an interview on the sidelines of the Asian Financial Forum at Hong Kong Convention and Exhibition Centre in Wan Chai on Jan 24, 2024. (ANDY CHONG / CHINA DAILY)

Hong Kong and Dubai, with a “common DNA”, hold immense potential for collaboration in the fields of green finance and digital finance, as the two cities push forward with green development and digitalization, Ian Johnston, chief executive of Dubai Financial Services Authority (DFSA), said in an exclusive interview with China Daily on Wednesday.

“We will continue to work on the whole ESG area together, because many common issues faced in the field are quite novel, which can provide good opportunities of cooperation for the two international financial centers; both are well-regulated and innovative,” Johnston said.

With Hong Kong and Dubai evolving into digital hubs, Johnston identified digital finance as another area where the two can drive financial collaboration

He revealed that following the ongoing two-day Asian Financial Forum (AFF), he will meet with officials from the Securities and Futures Commission (SFC) of Hong Kong to discuss arrangements for financial regulatory cooperation between the two financial hubs, adding that the priorities of the collaboration may align with the theme of the AFF — “Multilateral Cooperation for a Shared Tomorrow”.

READ MORE: HK, Dubai to hold joint climate finance conference in 2024

Taking ESG and decarbonization as an example, Johnston said that without international cooperation, achieving the desired outcomes in these areas would be challenging, and this kind of collaboration is equally vital for financial regulators like the SFC and the DFSA, which is an independent regulator within the Dubai International Financial Centre (DIFC).

“Hong Kong has long been a leading international financial center, attracting international businesses with its common law system, robust regulatory framework, excellent infrastructure, and open mindset,” Johnston said, adding that these elements also form the foundational design of the two-decades-old DIFC. In this regard, “Hong Kong and Dubai share a common DNA, and they will continue to collaborate along this direction.”

“The DIFC has already cooperated strongly with the financial industry in Hong Kong, and I believe that this partnership will continue to grow.”

With Hong Kong and Dubai evolving into digital hubs, Johnston identified digital finance as another area where the two can drive financial collaboration. He said that the DFSA is poised to foster cooperation with Hong Kong in the realm of digital financial regulation. 

Hong Kong Chief Executive John Lee Ka-chiu visited the UAE and Saudi Arabia last February, when 13 memorandums of understanding or letters of intent were inked

Johnston said that if fintech emerges in a manner that doesn’t have a direct negative impact on customers, regulatory oversight may not be necessary. However, in the face of new technological frontiers that were previously untouched, financial regulatory bodies need to share and exchange the latest information. This is an area where he hopes to collaborate with Hong Kong’s financial regulatory bodies.

Dubai, located on the southeastern coast of the Arabian Gulf, is the most populous city in the United Arab Emirates and serves as the economic and financial center of the Middle East.

READ MORE: Two HK student ambassadors to attend COP28 in Dubai

Financial collaboration with the Middle Eastern city exemplifies the increasingly close partnership between Hong Kong and the UAE, and the rest of the region.

Hong Kong Chief Executive John Lee Ka-chiu visited the UAE and Saudi Arabia last February, when 13 memorandums of understanding or letters of intent were inked, seven of which were with UAE enterprises and institutions, aiming to enhance cooperation in fields such as architecture, innovation and technology, and trade.

Three months after the visit, a delegation of high-level executives from the banking industry led by the Hong Kong Monetary Authority visited the gulf state, and announced the setting up of a work force with the Central Bank of the UAE to advance collaboration initiatives in finance.

Contact the writer at irisli@chinadailyhk.com