Compliance Alert: Fintech Agreement between Abu Dhabi Global Market and Israel
On 18th November 2020, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Markets (ADGM) announced that it had signed a FinTech co-operation agreement with the Israeli Securities Authority (ISA). This comes three months after the United Arab Emirates and Israel signed a peace agreement, known as the Abraham Accord.
What does the FinTech agreement provide?
- A framework for sharing knowledge;
- Facilitating the movements of start-ups; and
- The transfer of knowledge and talent between the two jurisdictions.
What does this mean for ADGM and Israel?
With this mutual partnership, the two jurisdictions can proactively promote financial growth through disruptive technological innovations, thereby strengthening each of their retrospective FinTech sectors.
Both jurisdictions will also be able to exchange information on trends, services and products, work collaboratively to form a range of FinTech initiatives including accelerator programmes and develop technologies such as digital payments and blockchain.
The agreement will also allow FinTech start-ups to access information from the respective jurisdictions through a single point of contact.
Statement from the CEO of ADGM’s FSRA
Richard Teng, the CEO of ADGM’s FSRA confirmed that “Following the signature of the historic Abraham Accords, we are excited to enter this FinTech Cooperation Agreement with the ISA”. [i]
The collaboration between the ADGM FSRA and the ISA is a significant historical move and highlights the importance of a healthy regional and global FinTech ecosystem.
In recent years, the UAE and Israel have become leading hubs for innovation and technology – both actively championing the development of financial technology (fintech) and disruptive technological innovations within each of its regions.
See our article on the “Paradigm shift for regulators- Fintech and Tech-startups in UAE and Isreal:
Partner & Head – Regulatory & Compliance Services
Senior Manager – Regulatory & Compliance Services