Dubai, UAE : The United Arab Emirates and Malaysia, have agreed on cooperation in financial technology (FinTech) innovation, the Dubai Financial Services Authority (DFSA), said.

The agreement between the DFSA and Securities Commission Malaysia (SC), reflects efforts by both authorities “to provide a robust regime that fosters innovation in the Dubai International Financial Centre (DIFC) and Malaysia,” the DFSA said.

The agreement was signed by Ian Johnston, the CEO of the DFSA, and Ranjit Ajit Singh, chairman of the SC.

The two regulatory bodies will share information on developments and innovations in FinTech, said the agreement, and they would consider joint innovation projects on the application of novel approaches to FinTech in the two markets.

“Given the significance of Islamic financing in both Malaysia and Dubai, FinTech developments in that sector will be of particular interest,” said the statement.

Johnston said, FinTech regime is developed to enhance and improve access to finance and the efficiency of markets. “By collaborating with the SC, we will further strengthen our FinTech proposition across traditional and Islamic finance markets,” he added.

The DFSA and SC have a long-standing relationship to support developments in each other’s markets. In 2007, the authorities signed a mutual recognition agreement, related to cross-border distribution and marketing of Islamic funds between Malaysia and the DIFC. It followed a 2006 joint initiative on regulatory alignment to facilitate Islamic finance transactions between the DIFC and Malaysia.

In May, the DFSA launched its Innovation Testing License, a special class of financial services license that allows FinTech firms to develop and test innovative FinTech concepts from the DIFC.

The DFSA’s initiatives follow the launch of the FinTech Hive at the DIFC, bringing together startups to compete and address the growing needs of the region’s financial services industry.

—NNN-WAM