The Dubai Financial Services Authority (DFSA) and Securities Commission Malaysia (SC) have inked an agreement to support fintech innovation in the two jurisdictions.

Under the agreement, the two parties will exchange information on fintech developments, refer innovative firms between their respective innovation functions, and offer regulatory guidance to the firms.

The authorities will also explore joint innovation projects on fintech, with focus on fintech developments in Islamic finance.

DFSA CEO Ian Johnston said: “Our FinTech regime is developed to enhance and improve access to finance and the efficiency of markets. We also want to encourage innovative financial services and solutions. By collaborating with the SC, we will further strengthen our FinTech proposition across traditional and Islamic finance markets.”

The latest agreement builds on an existing relationship between the two regulators, which joined forces in 2006 to support Islamic finance transactions between the two markets. Next year, the two parties inked a mutual recognition agreement for cross-border distribution and marketing of Islamic funds between the two markets.