Hong Kong’s leader has hosted Saudi Arabian elites for an investment conference, demonstrating the city’s willingness to embrace new business partners in the face of a struggling economy and geopolitical uncertainty. John Lee, Hong Kong’s Chief Executive, described the gathering as an important step in strengthening ties between Hong Kong and the Middle East, particularly Saudi Arabia.
The two-day event was organized by the Hong Kong government, its stock exchange, and the Future Investment Initiative (FII) Institute, a nonprofit founded by Saudi Arabia’s sovereign wealth fund. The FII Institute aims to expand its presence in Asia and has already opened an office in Hong Kong. Yasir Al-Rumayyan, Governor of the Public Investment Fund (PIF) and Chairman of the FII Institute, mentioned the institute’s plans to open offices in China and India.
Hong Kong’s strategic partnership with Saudi Arabia is seen as a way to hedge against US-China tensions and attract more business to the city. The summit is expected to boost Hong Kong’s economy, which has faced challenges such as an exodus of foreign talent, declining property prices, and fewer foreign companies using the city as a regional base.
The summit also highlights Hong Kong’s goal of diversifying its economic partnerships amid complex global challenges. George Chan, a global IPO leader for EY, believes that Hong Kong’s strength in bridging mainland China, Asia, and global capital flows makes it an ideal destination for Middle Eastern countries looking to diversify their investments.
Furthermore, Hong Kong’s IPO market is currently experiencing a downturn, with its worst year since 2003. The government is actively working to change this by attracting companies like Saudi Aramco, the world’s third most valuable company, to list in Hong Kong. The Hong Kong stock exchange has made it easier for Saudi-listed companies to apply for a secondary listing in the city, and an exchange-traded fund (ETF) tracking Saudi Arabian equities has been introduced.
The investment conference serves as a platform to foster closer ties between Hong Kong and Saudi Arabia, with the potential for significant economic benefits and increased business opportunities.