The Hong Kong Exchanges and Clearing Limited (HKEX) on Monday announced it has signed an agreement with the Saudi stock exchange to foster cooperation in different areas such as Fintech, ESG and cross listings.

The Memorandum of Understanding (MOU) with the Saudi Tadawul Group Holding Company, the stock exchange operator in the Kingdom of Saudi Arabia, reflected "HKEX's ongoing commitment to driving global connectivity and shaping a successful shared sustainable future," said HKEX Chief Executive Officer Nicolas Aguzin in a statement.

"This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation," he said.

This MOU brings Saudi Tadawul Group "one step closer towards enabling cross listings and other areas of collaboration" between Saudi Arabia and the Hong Kong Special Administrative Region, said Khalid Al Hussan, CEO of Saudi Tadawul Group.

"With global capital markets evolving, it is moreover important for us to work together to exchange information and align on best practice to elevate our capital markets and enhance the experience for issuers and investors alike," he said.