The Hong Kong Special Administrative Region (HKSAR)'s Financial Secretary Paul Chan is leading a high-profile delegation to Saudi Arabia, signaling a significant step in deepening the financial, innovation, and technological cooperation between Hong Kong and the Middle East region. This strategic move aims to further solidify Hong Kong's status as a global financial and commercial hub, offering new avenues for growth and investment opportunities.

Bridging the Gap: Hong Kong's Expanding Reach in the Middle East

Strengthening Financial Ties

The delegation, comprising over 110 members from various sectors, including the Belt and Road Office, the Hong Kong Monetary Authority, the Securities and Futures Commission, Hong Kong Exchanges and Clearing Ltd, and the Hong Kong Science and Technology Parks Corp, will attend the listing ceremonies of the first two exchange-traded funds (ETFs) tracking Hong Kong stock indices on the Saudi Exchange. This landmark event signals a new era of financial connectivity, allowing local investors in Saudi Arabia to easily access the Hong Kong stock market through locally listed ETFs. The debut of these ETFs follows the successful launch of Asia's first and the world's largest Saudi Arabia-focused ETF on the Hong Kong stock exchange in November 2023, further cementing the growing financial ties between the two regions.Observers anticipate that this collaboration will pave the way for the introduction of more two-way financial products, fostering capital flows and bringing more investment from the Middle East to the Hong Kong market. Liang Haiming, chairman of the Hong Kong-based China Silk Road iValley Research Institute, highlighted the vast potential for cooperation in digital payments, blockchain technology, and the joint development of green fintech products, further enriching the financial connectivity under the Belt and Road Initiative (BRI).

Driving Innovation and Technology

The visit also aims to accelerate and deepen cooperation in the realm of innovation and technology. The Hong Kong Science and Technology Parks Corp will bring more than 20 tech start-ups to conduct roadshows in Saudi Arabia, showcasing the HKSAR's technological prowess and exploring new investment opportunities. As Saudi Arabia continues its economic diversification efforts under the Vision 2030 plan, Hong Kong enterprises, with their advantage in scientific and technological expertise, are poised to find lucrative investment prospects and expand their reach in the Middle East market.Liang Haiming believes that this visit will not only benefit the HKSAR in terms of enhancing its international influence but also solidify its position as a global financial and trading center. The delegation's participation in the 8th edition of the Future Investment Initiative in Riyadh will provide a platform for the HKSAR to expound on its unique role as a "super connector" and "super value-adder," sharing insights on how Hong Kong can support the development of the Middle East and the Global South, as well as actively contribute to the progress of the BRI.

Unlocking Mutual Prosperity

The HKSAR's strategic expansion into the Middle East market represents a significant step in diversifying its economic partnerships and strengthening its global standing. By fostering deeper financial, innovation, and technological cooperation with Saudi Arabia and the broader Middle East region, Hong Kong is poised to unlock new avenues for growth, investment, and mutual prosperity. This visit not only signifies the HKSAR's commitment to enhancing its international influence but also underscores its pivotal role as a global financial and commercial hub, capable of bridging the gap between the East and the West.