The Hong Kong Securities and Futures Commission (SFC) and the United Arab Emirates’ Securities and Commodities Authority (SCA) have concluded a Memorandum of Understanding to expand cross-border market access for public funds under a Mutual Recognition of Funds (MRF) arrangement. The arrangement is positioned to extend Hong Kong’s public fund distribution network into the Middle East and would allow the direct offering of unlisted foreign funds to retail investors in the UAE for the first time. It is described as Hong Kong’s first MRF arrangement with a Middle East market and the UAE’s first with a jurisdiction outside the region. The MoU was signed into effect on 17 September 2025 by the SFC’s Chief Executive Officer Julia Leung and the SCA’s Chief Executive Officer Waleed Saeed Abdul Salam Al Awadhi, following a high-level bilateral meeting held on 16 September; the SFC also noted that SCA regulations issued in 2023 no longer permit unlisted foreign funds to be promoted to retail investors in the UAE. Further details of the mutual recognition of funds scheme are set out in the SFC circular dated 17 September 2025.
Hong Kong Securities & Futures Commission 2025-09-18
Hong Kong Securities and Futures Commission signs MoU with the UAE Securities and Commodities Authority to expand mutual recognition of public funds
The Hong Kong Securities and Futures Commission and the UAE’s Securities and Commodities Authority signed a Memorandum of Understanding for a Mutual Recognition of Funds arrangement, enhancing cross-border market access for public funds. This is Hong Kong's first arrangement with a Middle Eastern market and the UAE's first with a jurisdiction outside the region, allowing unlisted foreign funds to be offered directly to UAE retail investors. The agreement was signed on 17 September 2025, following a bilateral meeting.