Exclusive | Dubai sees Hong Kong as benchmark in push for green finance, Asia-Middle East corridor

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Harmonising standards and regulations can help unlock more capital for climate-friendly projects in Asia and the Middle East, analyst says

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‘We have been happy to learn from Hong Kong for our regulatory requirements,’ DFSA CEO Johnston says. Photo: Shutterstock

Yujie Xue

Published: 5:31pm, 20 Sep 2024

Dubai and Hong Kong are looking to adapt their capital market regulations to facilitate the issuance and listing of green bonds, helping elevate both financial hubs as primary sources of funds for climate-friendly projects.

That will help strengthen the Asia-Middle East investment corridor as authorities in both align their regulatory frameworks to promote sustainable finance, according to Ian Johnston, CEO of the Dubai Financial Services Authority (DFSA).

“As capital market regulators, our job is to do what we can to enable [sustainable] finance to support the green agenda set by the governments,” he said in an interview with the Post on Tuesday. The cooperation with the Hong Kong Monetary Authority [HKMA] “will give greater effects to that,” he added.

Both financial-market regulators agreed on Monday to bolster their collaboration in the area, by enhancing cross-border dialogue, deepening information exchanges, and conducting research to add momentum to the industry development.

HKMA CEO Eddie Yue (left) and Ian Johnston, CEO of the Dubai Financial Services Authority, sign a memorandum on September 16 to promote green finance. Photo: Handout

Sustainable finance supports actions to address a variety of environmental issues, including climate change and carbon pollution. It was a key area of focus when Dubai and Hong Kong signed an agreement a year ago to establish the Asia-Middle East economic corridor to support cross-border trading, family offices and fintech innovations.

Companies and agencies raised US$15.6 billion from the sale of green bonds in Hong Kong last year, making it the 10th busiest market for such securities, according to data compiled by US-based non-profit Climate Bonds Initiative.