The SFC and the UAE's SCA signed a MoU to expand fund distribution between Hong Kong and the UAE.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On September 18, 2025, the Securities and Futures Commission ("SFC") and the Securities and Commodities Authority ("SCA") of the United Arab Emirates ("UAE") signed a Memorandum of Understanding ("MoU") to deepen cross-border market access for public funds through a Mutual Recognition of Funds ("MRF") arrangement.
The signing took place during the Investopia Global – Hong Kong event, in the presence of The Honourable Paul Chan, Financial Secretary of the HKSAR Government, and H.E. Mohammad Alhawi, Undersecretary of the UAE Ministry of Investment. The MoU was signed by Ms. Julia Leung, CEO of the SFC, and H.E. Waleed Saeed Abdul Salam Al Awadhi, CEO of the SCA.
The agreement permits Hong Kong to expand its public fund distribution network into the Middle East, enabling the direct offering of unlisted foreign funds to retail investors in the UAE. This marks the first MRF arrangement with a Middle East market for Hong Kong and the first with a jurisdiction outside the region for the UAE.
Ms. Julia Leung, CEO of the SFC, noted that this significant collaboration with the SCA opens a new chapter in Hong Kong-UAE regulatory cooperation. H.E. Waleed Saeed Abdul Salam Al Awadhi, CEO of the SCA, added that this partnership marks a transformative milestone in redefining the global investment landscape.
Prior to the signing, a high-level bilateral meeting between the SFC and the SCA was held on September 16. This meeting reaffirmed both parties' shared vision to enhance market access and investor protection, as well as to foster financial innovation.
New regulations issued by the SCA in 2023 prohibit the promotion of unlisted foreign funds to retail investors in the UAE, making the MRF arrangement particularly relevant.
Further details of the mutual recognition of funds scheme are outlined in the SFC’s circular dated September 17, 2025.
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