Business entities from Hong Kong and mainland China are mobilizing for significant investments in Saudi Arabia, signifying a major move towards deepening economic relationships, as conveyed by a high-ranking official.
An entourage comprising 30 influential business figures from Hong Kong and China is preparing to delve into various sectors within the Kingdom, motivated by the ambitious Vision 2030 initiative set forth by Saudi leadership, according to King Leung, who heads global financial services and fintech at Invest Hong Kong, during an interview.
Leung elaborated on the purpose behind his trip to Riyadh, stating, I’m leading a delegation of over 30 executives from diverse fields to investigate business prospects in Saudi Arabia. We aim not only to attract investments but also to assist Chinese companies in establishing Hong Kong as their launchpad into key markets like Saudi Arabia.
He expressed confidence in the significant investment numbers anticipated, reflecting Hong Kong investors’ strong interest in the Saudi market.
The mutual interests between Hong Kong and Saudi Arabia are supported by a notable alignment of business objectives in both regions, with both sides looking to create strategic alliances.
Representatives from Hong Kong, including private sector chiefs and venture capitalists, are eager to identify collaborative opportunities that resonate with Vision 2030’s goals.
Leung commented, The findings are allowing business leaders to recognize the strong synergy some Hong Kong enterprises share with Vision 2030 in your country.
He highlighted the potential for substantial investments across various sectors, particularly large-scale projects like NEOM and the King Salman Park, which promise to redefine the Saudi investment arena.
These initiatives not only attract investment but also stimulate growth in related industries, including financial services and consumer goods, emphasized the financial services leader.
He elaborated, With these megaprojects comes a surge in business activity, starting with construction. Subsequently, this necessitates services from adjacent sectors, like financial services, consumer products, and payment systems, which present numerous opportunities that our delegates and investors find very exciting.
He also cited the nation’s impressive economic growth and low debt ratio as factors boosting investor confidence.
Attention is also being drawn to sectors like green energy and advanced manufacturing, with Leung affirming that Saudi Arabia is charting the course for the future in clean energy.
Hong Kong-based firms, equipped with advanced technologies, are looking to play a role in Saudi Arabia’s sustainability ambitions.
Discussing green energy initiatives, Leung said, A green energy firm I’ve spoken with in mainland China, experienced in green hydrogen, is considering establishing a green hydrogen plant in Saudi Arabia.
He pointed out that these types of projects, which aim to utilize solar energy for hydrogen production, are indicative of the collaborative ethos between the two regions.
Moreover, Saudi Arabia’s burgeoning fintech sector offers fertile terrain for joint ventures with Hong Kong, with fintech firms poised to support banking services and digital transformation in the Kingdom.
Leung noted the interest from both sides, with Saudi banks contemplating a Hong Kong presence to enhance their trade and financial services, leveraging the city’s strategic position as an entryway to the Chinese market.
He recounted, Some Saudi banks are now looking to establish operations in Hong Kong to serve their Chinese clientele, offering services such as trade finance.
This development occurs after a pivotal moment last year, which saw the signing of a memorandum of understanding between Invest Hong Kong and the Saudi Ministry of Investment, cementing the economic bond between the two regions.
The agreement has provided Hong Kong delegates with valuable insights into Saudi Arabia’s macroeconomic climate, strategic vision, and emerging investment opportunities, further energizing their commitment to invest in the Kingdom.
Leung shared his enthusiasm regarding the progress made by the country and the impression it left on the delegation, concluding with a positive outlook on the future of this burgeoning partnership.