A joint partnership in international finance is coming from
a slightly unusual place: the Abu Dhabi Global Market (ADGM) and Paris
EUROPLACE, which are poised to sign a memorandum of understanding (MoU) on developing
collaboration on joint financial activities and promoting symbiotic growth in
the two national economies.
ADGM is an international finance center
that works to support the capital city’s status as the major financial hub in
the region. Paris EUROPLACE is a nonprofit organization that promotes economic
development for the French economy. Both parties seem to have similar aims for
their respective areas of representation, and now, officials are saying they
might team up to figure out new ways to move forward in areas like green
finance and Fintech, the new word for emerging aspects of the financial
technology industry.
Although a July press release talks about plans to develop
relevant activities and events that foster financial innovation and closer
regulatory cooperation and to enable closer collaboration on possible joint
financial activities and common interests, there are scant details on how this agreement will work and what will be accomplished.
“We are honored to reinforce the cooperation and
business opportunities between Abu Dhabi and Paris financial marketplaces
through this joint agreement.” Paris EUROPLACE CEO Arnaud de Bresson said in a press
statement. “As the first financial marketplace of the Eurozone, Paris
has strong strengths to share with Abu Dhabi. This agreement paves the way for
concrete joint initiatives in the respective fields of expertise of each
country.”
Phillipe Richard is director
of international affairs at ADGM’s Financial Services Regulatory Authority, the arm of the organization tasked with managing the agreement.
“With the newly
minted MoU on 5 July, Paris EUROPLACE and ADGM will go into deeper
collaborations and discussions.” Richard said in response to a set of interview
questions last week. “The MoU establishes a platform for us to better
understand and share relevant information on banking, financial services,
securities legislation and regulations in each market.”
Richard said international investment may play a role in the
collaborative activities that the two groups have planned.
“The agreement
enables both authorities to explore mutually beneficial initiatives, including
investment, Fintech, and possible cross-border investment activities in both
financial centers.” Richard said.
While there is a lot of speculation on how the international
banking world will handle new Fintech developments and technologies such as Bitcoin
and Blockchain, as well as disruptors like Paypal, competing with big banks
for transaction handling and deposit money, there’s a lot of potential in
developing international programs to look closely at how finance is handled in
a given country, so that, from the point of the federal regulators and
economics departments, changes go smoothly. There’s also quite a bit of room
for innovation as digital banking and other advances promote borderless
societies.
However, when it comes to the new partnership between Abu
Dhabi and Paris, officials involved in the new partnership are not releasing
details at this time. ADGM officials declined additional comment.
“Details of these projects could be made available when
appropriate.” Richard said.
