The Australian Securities and Investments Commission (ASIC) has signed a co-operation agreement with its Abu Dhabi counterpart, to help Australian fintech companies penetrate the lucrative Middle Eastern market.

The agreement with the Abu Dhabi Global Market’s Financial Services Regulatory Authority will allow ASIC’s Innovation Hub and Abu Dhabi’s Regulatory Laboratory to refer fintech businesses to one another. It also provides a framework for the two regulators to share information.

The United Arab Emirates is Australia’s largest Middle Eastern trading partner, with goods and services trade valued at $8.8 billion in 2015.

ASIC says the Middle East and North Africa are poised for a “fintech boom”.

It says most fintech activity has so far occurred in the payments space, with start-ups offering bill payment, electronic wallets, mobile and online payment solutions.

This is ASIC’s seventh fintech referral agreement, following deals with the UK, Singapore, Ontario in Canada, Hong Kong, Japan and Malaysia.

ASIC Chairman Greg Medcraft says fintech developments are not confined by national borders and there is much to gain from the latest deal “in a region ripe for further development”.