Hadi al-Badri, chief executive of the Dubai Department of Economic Development and Tourism, announced in an interview recently that the United Arab Emirates is negotiating with Hong Kong to explore the establishment of a partnership in the virtual asset industry.
Badri emphasized that China, including Hong Kong, is an important trading partner of the UAE, and the UAE has become a gateway for Chinese companies to enter the Middle East market.
Badri said the two parties could collaborate on trade, investment, digital transformation and financial services, with a particular focus on virtual assets. Discuss plans involving licenses and license exchange programs. He noted that Hong Kong’s proactive approach to regulating virtual assets makes it an ideal partner for the UAE.
Although Badri did not disclose any specific timeline for the proposed partnership, he emphasized the close relationship between the two countries and that such a partnership would further strengthen their economic ties. He further stated that the UAE has become a global hub for digital economy and fintech innovation.
This virtual asset partnership will help Dubai position itself as a significant player in the global financial arena. Dubai has taken an important step in the field of digital assets by launching the UAE Blockchain Strategy in 2018, which aims to use blockchain technology to transform the way the government operates and create a blockchain ecosystem.
Additionally, Dubai launched the Dubai Blockchain Strategy 2021 in 2021, which aims to transform the city into the world’s first fully blockchain-driven government.
The UAE has made headway in the fintech industry with the launch of the Regulatory Laboratory (RegLab), which allows fintech companies to test their products in a controlled environment. The initiative aims to foster innovation and create an enabling environment for the fintech industry to thrive.
The UAE’s digital economy has already attracted significant foreign investment, and the value of the country’s fintech industry is expected to reach $2.5 billion by 2022.
The country’s stable political environment, strong financial infrastructure and favorable business environment make it an ideal investment destination for fintech companies looking to expand their operations in the Middle East.
The partnership with Hong Kong will further strengthen the UAE’s position in the global financial arena and help the country become a hub for digital assets in the Middle East. With virtual assets gaining popularity globally, the UAE has positioned itself as a leader in this emerging industry.