The Monetary Authority of Singapore (MAS) will team up with Abu Dhabi Global Market - a global financial centre in the United Arab Emirates - to nurture financial technology entrepreneurship and support financial services innovation.

The two parties signed a cooperation agreement yesterday that establishes a strategic framework to help start-ups and innovators better understand the regulatory regime in each jurisdiction.

They will also provide support through the application and authorisation process.

Under the agreement, the MAS and the Financial Services Regulatory Authority of Abu Dhabi Global Market will also undertake and explore joint innovation projects on applying key technologies.

These key technologies include digital and mobile payments, blockchain and distributed ledgers, big data and flexible platforms, said a joint statement.

Mr Sopnendu Mohanty, chief fintech officer at the MAS, said: "The agreement will open up new avenues and create opportunities for fintech firms in Singapore and Abu Dhabi looking to expand into each other's markets."

Mr Richard Teng, chief executive of the Financial Services Regulatory Authority of Abu Dhabi Global Market, said: "Asia and the Middle East and North Africa regions have immense growth potential and a large underserved financial sector."

The MAS has been ramping up efforts to develop the fintech ecosystem here in recent years. It formed a financial technology and innovation group in August 2015 to drive its "Smart Financial Centre" initiatives, as part of Singapore's ambition to be a smart nation.

The group formulates regulatory policies and develops strategies to facilitate the use of technology and innovation to better manage risks, enhance efficiency and strengthen competitiveness in the financial sector.

Jacqueline Woo