Singapore and Abu Dhabi are inking a fintech pact. How did the deal come about, and who has more to gain?
The Monetary Authority of Singapore, (MAS), said it will partner with its counterpart in Abu Dhabi to develop robust fintech industries to support finance and to promote innovation in both markets.
The move intends to strengthen regulatory ties, foster synergies, and develop capabilities by cooperating internationally.
Without doubt, the emirate has more to gain from the deal: while Singapore is established as a fintech hub, Abu Dhabi is currently vying with Dubai to be the preeminent hub for emerging fintech firms in the Middle East.
Technology Tie-Up
Specifically, Singapore and Abu Dhabi have set up a strategic framework to help startups and entrepreneurs navigate regulatory requirements and provide support in application and authorization.
Abu Dhabi has already modeled its regulatory sandbox system on Singapore's as well as on the UK's.
Both regulators said they will try to collaborate on key technologies like digital and mobile payments, Blockchain and distributed ledgers, big data, flexible platforms and other emerging technologies.
Singapore Emissary
«We hope that through closer collaboration with like-minded fintech hubs, we are able to leverage the strengths and expertise of our markets to more efficiently address the immediate needs of the industry in respective regions and anticipate the demands of the future,» Richard Teng, head of Adu Dhabi's financial regulator said in a statement.
Teng, who is Singaporean, began his career at the MAS before moving to the city-state's bourse as chief regulatory officer. He has been at the helm of Abu Dhabi's financial regulator for the past two years.
For its part, MAS said the pact will open new avenues and create opportunities for fintech firms from Singapore and Abu Dhabi to expand into each other’s markets.
