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Friday, July 30, 2021

QFC, Labuan to boost economic growth between Asia, Middle East

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Qatar Financial Centre Authority and Labuan International Business and Financial Centre are in the the process to maximise regional economic growth. 

QFC Authority signed an agreement with Malaysia’s Labuan IBFC to develop long term cooperation and promote the economic and financial sector ties between the two two.

The move sees both financial centres agree to a “commitment to collaborate on certain objectives including, but not limited to, marketing, awareness activities and identification of mutually beneficial initiatives,” Qatar News Agency said.

Under the structure of the agreement, QFC and Labuan IBFC commit to exploring a mutually beneficial framework to allow relevant financial institutions in the State of Qatar to operate in Labuan IBFC and allow relevant financial institutions in Labuan IBFC to operate in the QFC, subject to the approval of all competent authorities,” the state news agency added.

They also agreed to collaborate on financial sector domains, including setting up business operations with respect to Islamic finance, digital finance, capital markets, asset and investment management, in addition to other relevant financial institutions and service providers within their ecosystems.

“The agreement further stipulates facilitating the recognition of banks, insurers, and other financial sector entities in their respective markets, subject to meeting the other jurisdiction’s regulatory requirements, and collaborating to explore mutual recognition of regulations for relevant financial institutions via the competent authorities of each jurisdiction,” QNA added.

Read also: Qatar issues support packages for businesses affected by Covid-19

Chief Executive Officer & Board Member Yousuf Mohamed Al-Jaida said “we are delighted to partner with Labuan IBFC and embark on collaborations that will allow both financial centres to expand into strategic and lucrative markets.”

Asia’s leading wholesale mid shore financial centre, Labuan IBFC and QFC both play a substantial role in promoting regional economic growth due to their strategic locations in Asia and the Middle Easter.

The agreement opens a door to new markets while expanding and elevating “the regulatory recognition of the market players in each other’s jurisdiction.”

Labuan IBFC is no longer limited to serving Malaysia-based entities and has expanded “to include international organisations in banking, leasing, capital markets, insurance, reinsurance, risk management and wealth management, QNA said.

It is also home to the world’s first sukuk and globally recognised as an Islamic financial hub.

Chief Executive Officer of Labuan Jaafar-Crossby said the agreement heralds an exciting phase of for his company’s growth in the MENA region.

“We could not ask for a better partner than the Qatar Financial Centre. QFCs legal and operational framework, as well as their adherence to international standards of transparency and regulatory robustness, provides an ideal platform from which our intermediaries may leverage towards making inroads into the MENA region. I look forward to the partnership with Yousuf and his team in creating a meaningful collaboration,” he said.


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