UAE Central Bank Joins Hong Kong’s CMU to Access Chinese Capital Markets

The Central Bank of the United Arab Emirates has formally joined Hong Kong’s Central Moneymarkets Unit, the city’s core securities depository for debt instruments. The move gives UAE investors direct, cost-effective access to mainland Chinese capital markets through Hong Kong’s established financial infrastructure.

The CMU membership was finalized during the third bilateral meeting between CBUAE Governor Khaled Mohamed Balama and HKMA Chief Executive Eddie Yue in Abu Dhabi on February 11. Both sides discussed cross-border debt market connectivity, digital asset developments, CBDC progress, stablecoin regulatory frameworks, and supply chain financing.

Digital Asset Framework Takes Shape

This latest agreement builds on a rapid succession of financial linkages between the two jurisdictions. In January 2026, UAE’s Capital Market Authority and Hong Kong’s Securities and Futures Commission signed a landmark MoU focused exclusively on digital asset regulatory cooperation. That followed September 2025 accords establishing mutual recognition of funds and cross-listings of ETFs—Hong Kong’s first such arrangement with a Middle Eastern market.

The tokenization discussions are particularly significant. Both regulators have been actively developing frameworks for tokenized securities, with Hong Kong’s Project Ensemble exploring wholesale CBDC applications and the UAE advancing its own digital dirham initiative. A coordinated approach could establish interoperable standards for tokenized debt instruments traded across both markets.

Trade Flows Underpin Financial Integration

The financial architecture reflects substantial existing trade volumes. UAE exports to Hong Kong reached $19.7 billion in 2024, predominantly gold. Non-oil bilateral trade has consistently exceeded $16 billion annually since 2022.

“The CBUAE’s membership in the Central Moneymarkets Unit enables access to Asian capital markets and deeper engagement with other global financial centres,” Balama stated. He emphasized the move supports “diversifying investment opportunities for market participants in the United Arab Emirates.”

For Hong Kong, the partnership reinforces its positioning as the primary offshore renminbi hub. “This underscores Hong Kong’s position as a premier gateway for international investors to tap into the broader China and Asia markets,” Yue noted.

What Comes Next

The stablecoin regulatory discussions warrant close attention. Hong Kong is finalizing its stablecoin licensing regime, while the UAE has been developing its own framework through the Virtual Assets Regulatory Authority. Coordinated standards could facilitate dirham or Hong Kong dollar-denominated stablecoins for cross-border settlement.

No timeline was announced for specific digital asset initiatives, but the pace of agreements—four major MoUs in roughly 14 months—suggests both sides are moving quickly to establish the infrastructure before broader Gulf-Asia capital flows materialize.

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