The Financial Services Board (FSB) has established a formal co-operation agreement with Abu Dhabi’s financial services regulator, for the exchange of information.

The two regulators have signed a memorandum of understanding "to enable greater collaboration on regulatory matters and facilitate the exchange of information to promote the robustness and maintain the integrity of the financial industries in both countries," the FSB said in a statement Tuesday.

The memorandum of understanding sets out a framework for mutual assistance and co-operation to ensure compliance with the laws and regulations of both countries. Abu Dhabi, the capital of United Arab Emirates, is an international financial centre with a zero tax rate.

The Abu Dhabi Global Market (ADGM), which opened for business in October 2015, consists of three independent authorities: a registration authority, a financial services regulatory authority and a judicial authority.

"This memorandum of understanding presents both institutions with an opportunity to strengthen cross-border ties," FSB executive officer Dube Tshidi said.

ADGM financial services regulatory authority CEO Richard Teng said that the agreement "recognises our shared ambition to foster greater investor protection and support the continuous development, innovation and supervision in financial products and activities in both our financial sectors.

"One of the key objectives of this partnership is to develop relevant co-operative arrangements and cross-border collaboration that enable the growth and meet the business needs of companies and businesses in our jurisdictions."