The Qatar Financial Centre Authority (QFC) has signed a memorandum of understanding (MoU) with Labuan International Business and Financial Centre (IBFC) to develop long-term cooperation and boost economic and financial sector ties between the two financial centres.
Yousuf Mohamed Al-Jaida, CEO of QFC and Farah Jaafar- Crossby, CEO of Labuan IBFC signed the deal on 15 April 2021, which entails a commitment to collaborate on certain objectives including, marketing, awareness activities and identification of mutually beneficial initiatives.
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.
Both financial centres also agree to collaborate on financial sector domains, such as setting up business operations with respect to Islamic finance, digital finance, capital markets, asset and investment management, and other relevant financial institutions and financial service providers within their ecosystems.
The agreement also 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.
Commenting on the agreement, Al-Jaida, says: “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.”
He adds: “Labuan IBFC offers a strategic platform to expand into the burgeoning Asian market. This MoU reinforces our focus on growing Qatar’s financial services sector, in line with our 2022 strategy, by attracting international firms to set up in Qatar and creating pathways for QFC firms to expand globally.”
Jaafar-Crossby, notes: “This MoU heralds an exciting phase of Labuan IBFC’s growth in the MENA region, and we could not ask for a better partner than the Qatar Financial Centre. QFC’s 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 Middle East and North Africa (MENA) region.”
“I look forward to the partnership with Yousuf Mohamed Al-Jaida and his team in creating a meaningful collaboration,” she concludes.
In January, Labuan IBFC signed a deal with RAM Rating Services Berhad, Malaysia’s premier rating agency, to collaborate on RAM Ratings’ Labuan Entity Corporate Assessment (LECA) service.
