Hong Kong, UAE solidify financial links with deeper regulatory ties, digital assets focus

South China Morning PostEN 2 min read 100% complete by Aileen ChuangFebruary 22, 2026 at 04:00 AM

AI Summary

short article 2 min

Hong Kong and the UAE are strengthening financial ties through deeper regulatory cooperation, with a focus on digital assets. This collaboration aims to boost cross-border investment flows between China and the Middle East, positioning Hong Kong as a key hub for capital deployment in Asia. A significant area of cooperation is the development of joint digital currency initiatives, particularly through Project mBridge, which facilitates more efficient settlements between China, Hong Kong, Thailand, the UAE, and Saudi Arabia. Transaction volumes under Project mBridge have increased dramatically, with the digital yuan playing a major role. This cooperation could lead to mutual recognition of cross-border products like ETFs and green bonds, creating a multi-level financial framework.

Key Entities & Roles

Key Player Opposition Context

Saudi Arabia 40% Thailand 40% Atlantic Council 50% PwC China 60% digital yuan (e-CNY) ×370% Linda Cai ×270% Project mBridge ×270% Middle East ×380% United Arab Emirates ×280% China ×490% Hong Kong ×290%

Keywords

digital assets 90% financial links 90% china-middle east cooperation 80% regulatory ties 80% digital yuan 80% cross-border investment 70% project mbridge 70% hong kong 60% cross-border payment 60% united arab emirates 60%