The Dubai Financial Services Authority (DFSA) and the Australian Securities and Investments Commission (ASIC) have inked an agreement to promote fintech innovation in the two markets.

Under the pact, the regulators will refer innovative businesses to each other’s markets. The agreement will also allow the watchdogs to exchange information on regulatory technology.

ASIC previously signed similar fintech agreements with the UK, Singapore, Ontario, Hong Kong, Japan, Malaysia, Abu Dhabi and Switzerland financial regulators.

Commenting on the partnership, ASIC commissioner John Price said: “Regtech is becoming more and more important – this is a new frontier in our bilateral cooperation that will benefit both regulators and businesses.”

The latest fintech agreement is part of DFSA’s innovation strategy, which aims to make the UAE a global innovation hub. DFSA has already introduced various initiatives to support fintech such as the FinTech Hive accelerator programme, and the Dubai Future Accelerators, which allows collaboration of technology firms with government organisations.

DFSA CEO Ian Johnston added: “Today’s agreement underscores our commitment to maintaining strong channels of communication with our regulatory peers and creates a regulatory framework that supports the latest developments in FinTech innovation.”