Hong Kong, Gulf nations seek synergies in finance and infrastructure to deepen ties
Officials from Saudi Arabia, UAE, Oman and Qatar say Hong Kong can a play a major role to help diversify their economies
Hong Kong and countries in the Middle East are looking to deepen collaboration in finance, artificial intelligence (AI), logistics and big infrastructure projects, government officials said on Tuesday.
The city’s strong capital market could help Gulf Cooperation Council (GCC) countries raise funds to finance projects as they seek to diversify their economies, said Gulf officials, who welcomed investment from Hong Kong. The GCC comprises Saudi Arabia, United Arab Emirates, Oman, Qatar, Bahrain and Kuwait.
“Under the national investment strategy, the kingdom is poised to deepen its collaboration with Hong Kong,” Faris Algarni, assistant deputy minister of investment of Saudi Arabia, said in a panel discussion at the Asian Financial Forum in Hong Kong.
Saudi Arabia’s Vision 2030 strategy aims to reduce the country’s reliance on oil and boost sectors including manufacturing, tourism, renewable energy, digital infrastructure and healthcare. These would offer “ample opportunities for the Hong Kong businesses”, Algarni said.
Hong Kong has sought to forge ties with the Gulf nations. Financial Secretary Paul Chan Mo-po led a delegation to the Future Investment Initiative (FII) summit in Riyadh in late October. Public Investment Fund, Saudi Arabia’s sovereign wealth fund, and the Hong Kong Monetary Authority agreed to launch a US$1 billion fund to help Hong Kong-based firms grow their presence in the Middle East.
Two exchange-traded funds (ETFs), valued at a combined US$1.8 billion, were listed on Saudi Arabia’s Tadawul stock exchange during the FII summit, allowing Middle Eastern investors to trade Hong Kong stocks for the first time. This completed a two-way flow of capital, after an ETF tracking Saudi’s top stocks was listed in Hong Kong in November 2023.
