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Exclusive | Middle Eastern countries eager to invest in Hong Kong mega projects such as Northern Metropolis, finance chief Paul Chan says

  • Finance minister Paul Chan says Gulf countries very interested in infrastructure projects, but more time needed to explain opportunities elsewhere in East Asia
  • He points to Northern Metropolis development as prime example of ‘long-term stable investments’ sought by Middle Eastern nations

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The Kwu Tung area in the New Territories. The Northern Metropolis project along the border with Shenzhen has been highlighted by Hong Kong’s finance chief as a target for investment from Gulf states. Photo: May Tse
Natalie Wong

Middle Eastern countries are eager to invest in Hong Kong mega projects such as the Northern Metropolis, while more time is needed to further explain opportunities available in mainland Chinese and other East Asian markets, the city’s finance chief has said.

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Financial Secretary Paul Chan Mo-po told the Post that efforts to woo Gulf countries were beginning to bear fruit, pointing to a decision by Saudi Arabia’s sovereign wealth fund to start hosting one of its leading investment summits in Hong Kong every year.

“They are very keen on investing in infrastructure, because these would be long-term stable investments,” Chan said in an exclusive interview on Thursday, citing the Northern Metropolis development as an example.

Financial Secretary Paul Chan says Gulf states also offer major opportunities for the city’s innovation and technology sector. Photo: Dickson Lee
Financial Secretary Paul Chan says Gulf states also offer major opportunities for the city’s innovation and technology sector. Photo: Dickson Lee

Amid concerns over mega projects putting a strain on public coffers at a time when the city is expected to run a deficit for the second year in a row, the minister has sought to offer reassurances that the developments can attract investment.

In his budget earlier in the year, Chan proposed setting up an infrastructure bond scheme and allowing public subscription to meet the cash flow needs of the projects.

Two of the biggest on the horizon are artificial islands off Lantau, at a cost of HK$580 billion (US$74.2 billion), and the Northern Metropolis along the border with Shenzhen. Once completed, the two projects will supply more than half of the 7,300 hectares (18,040 acres) of land needed by the city to cope with demand beyond 2048.

Meanwhile, Gulf governments have been investing heavily in infrastructure to transform their oil-dependent economies.

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