HKETO Dubai's Simon Chan on why Gulf investors are looking to Hong Kong

Core Viewpoint - Hong Kong is enhancing its role as a strategic bridge between Asia and the Gulf, facilitating trade and investment while promoting collaboration across various sectors, including finance, technology, and sustainability [2][3]. Group 1: Role of HKETO Dubai - The Hong Kong Economic and Trade Office in Dubai (HKETO Dubai) serves as the official representative of Hong Kong in the GCC, focusing on strengthening economic and trade relations [4][5]. - HKETO Dubai promotes Hong Kong's strengths, including its free economic system and status as an international financial hub, to attract investment from the GCC [5][6]. - The office facilitates bilateral cooperation in culture, education, and technology, enhancing overall collaboration between Hong Kong and the Middle East [5][6]. Group 2: Sectors for Collaboration - There is growing interest in collaboration across diverse sectors, including logistics, hospitality, fintech, and IT security, with many Hong Kong businesses establishing a presence in the GCC [4][6]. - Middle Eastern firms are increasingly exploring opportunities in high-value sectors such as food and beverage, logistics, and consumer electronics, indicating a dynamic economic complementarity [6][7]. Group 3: Financial Connectivity - Hong Kong is recognized as a leading global IPO destination, providing GCC investors access to A-shares in China through the Mainland-Hong Kong Stock Connect [12]. - The establishment of exchange-traded funds (ETFs) tracking both the Saudi Arabian market and Hong Kong stocks signifies enhanced capital market connectivity [13]. - Hong Kong's position as the largest offshore Renminbi center and a premier bond issuance hub supports GCC investors in diversifying into RMB-denominated assets and Islamic bonds [14][15]. Group 4: Innovation and Technology - Hong Kong is engaging GCC partners in innovation, fintech, and green technologies, offering a full suite of investment solutions across the region [11][19]. - The Greater Bay Area (GBA) serves as a significant opportunity for GCC investors, with many delegations visiting to explore investment in tech-focused funds [16][18]. - Events like Hong Kong FinTech Week and the Asian Financial Forum are fostering deeper collaboration in emerging technologies and sustainable finance [18]. Group 5: Belt and Road Initiative - Hong Kong is positioned as a strategic platform for the Belt and Road Initiative (BRI), facilitating projects through its professional services and financial infrastructure [23][24]. - The city's outward direct investment in BRI countries reached $133 billion in 2023, indicating a strong commitment to global capital deployment [29]. - Hong Kong's legal and dispute resolution services enhance its attractiveness as a partner in BRI cooperation, ensuring efficient management of complex projects [30]. Group 6: Engagement with Gulf Investors - UAE and Saudi investors increasingly view Hong Kong as a resilient partner for accessing broader Asian markets, with active discussions on investment channels [40][41]. - The recognition of UAE exchanges by HKEX and the establishment of cross-listing opportunities signify growing financial connectivity [43]. - High-level delegations from the UAE and Saudi Arabia are visiting Hong Kong to explore partnerships and investment opportunities, highlighting mutual interests [44][45]. Group 7: Opportunities for Gulf Businesses - Hong Kong offers a competitive business environment with low taxes, a liquid capital market, and a robust financial system, making it an attractive gateway to Asia [48][49]. - The city serves as a springboard into Southeast Asia and broader Asia-Pacific markets, with strong alignment between Gulf economic diversification strategies and Hong Kong's strengths [52][53]. - Hong Kong's expertise in infrastructure development and project financing positions it as a valuable partner for Gulf governments investing in sustainable growth [54].