Hong Kong is looking to strengthen financial ties with Saudi Arabia following a successful visit by its Financial Secretary, Paul Chan Mo-po. During his recent trip, several key agreements were made, emphasizing Hong Kong’s vital role in global markets.
Chan’s visit led to the Hong Kong Monetary Authority and Saudi Arabia’s Public Investment Fund agreeing to create a $1 billion investment fund. This fund will focus on businesses in Hong Kong and the Greater Bay Area, targeting industries like manufacturing, renewable energy, fintech, and healthcare. The aim is to support these businesses’ expansion into the Saudi Arabian market.
At the Saudi Future Investment Initiative summit, over 20 Hong Kong start-ups showcased their innovations. Seven companies secured memorandums of understanding with Middle Eastern partners, and one fintech firm from the Hong Kong Cyberport reached a commercial agreement with local entities.
Chan also attended a ceremony for the launch of the first exchange-traded fund (ETF) in Saudi Arabia that focuses on Hong Kong stocks. This ETF, being the largest in the Middle East, is expected to draw in regional investors and expand funding opportunities for Hong Kong while diversifying investment options in Saudi Arabia.
Hong Kong delegates engaged in detailed discussions with Saudi investors and financial authorities, exploring opportunities in financial services, product innovation, and talent development. Middle Eastern firms highlighted Hong Kong’s role as a “super-connector,” which facilitates connections with diverse emerging markets, including those in China, Europe, and the US.
Dong Shaopeng, a financial expert, noted the growing interest of Middle Eastern investors in China, attributing it to the region’s promising prospects. He emphasized Hong Kong’s unique position in capital internationalization compared to the Chinese mainland, which enhances its status as a “super-connector.”