Hong Kong to prioritise boosting ties with Saudi Arabia; Belt and Road Summit to outline investment possibilities, John Lee says
- City leader marks launch of Hong Kong chapter of Saudi Arabia-China Entrepreneurs Association at gala dinner
- Eleven hi-tech companies in Hong Kong sign deals with venture capital firm eWTP Arabia Capital at event
Hong Kong is prioritising boosting ties with Saudi Arabia, with more investment possibilities between the two places to be outlined at a major summit in September in the city, Chief Executive John Lee Ka-chiu has said.
City leader Lee made the comments on Sunday at an event to mark the launch of the Hong Kong chapter of the Saudi Arabia-China Entrepreneurs Association (SCEA) and to welcome an official delegation from the Middle Eastern country.
At the event, 11 hi-tech companies in Hong Kong signed deals with venture capital firm eWTP Arabia Capital (eWTPA) in an effort to explore more opportunities in the Middle East market.
“From the outset, the current term of the Hong Kong [government] – now a year and a day running – has put a priority on revitalising relations with Saudi Arabia, and the Middle East in general,” Lee said at the gala dinner held at the Hong Kong Science and Technology Parks in Sha Tin.
“Since then, a number of Hong Kong companies have followed up with Saudi businesses, exploring opportunities in sectors such as banking, investment and architecture,” Lee said.
Saudi Arabia and Hong Kong signed six bilateral deals during Lee’s visit. Key agreements include a memorandum of understanding between the Saudi stock exchange operator, Saudi Tadawul Group, and Hong Kong Exchanges and Clearing (HKEX), to increase cooperation in the financial technology, cross listings, and environmental, social and governance (ESG) areas.
Hong Kong firms move to cut major deals in Middle East after John Lee’s visit
Lee also said Hong Kong would host a Belt and Road Summit in September.
“This year, the summit will feature a dedicated Middle East forum for the very first time,” he said. “That will present manifold opportunities for Belt and Road companies and investors to talk business with their Saudi and Middle Eastern counterparts.”
He also said he was pleased to see SCEA set up an office in Hong Kong.
The association, launched in February at the LEAP 2023 conference during Lee’s visit to Riyadh, is a non-profit organisation operated by eWTPA and supported by the Middle Eastern country’s Ministry of Communications and Information Technology and the Saudi Federation for Cybersecurity, Programming and Drones.
With more than 100 founding members, including Aramco, Alibaba, China Mobile and Tencent, the association serves as a platform for business communities in Saudi Arabia and China to foster investment and cooperation opportunities.
Alibaba Group Holding is the owner of the South China Morning Post.
Bye to the West? Hong Kong banking on Gulf business diversification
Jerry Li, director general of SCEA and the founding managing partner of eWTPA, said: “We aim to enable Hong Kong’s leading financial and technology companies to establish a presence in Saudi Arabia, thereby contributing to the economic diversification of the country in line with Saudi Arabia’s Vision 2030.”
Li added: “We also hope to facilitate the listing of companies from both countries on Saudi and Hong Kong’s stock exchanges.”
A venture capital firm based in Beijing and Riyadh, eWTPA is backed by Chinese e-commerce giant Alibaba’s eWTP Capital and Saudi Arabia’s sovereign wealth fund Public Investment Fund.
It positions itself as a bridge connecting Chinese companies and emerging markets such as the Middle East and North Africa.
The 11 Hong Kong hi-tech firms that signed memorandums of understanding with eWTPA on Sunday included eight companies at the science park.
Among the 11 were aviation training and education tech solutions company Aerosim (HK), robotics company FJ Dynamics International, AI digital solutions provider FreeD Group, quantum physics and AI drug research and development company XtalPi.
The Saudi delegation, led by the country’s Minister of Communications and Information Technology Abdullah Alswaha, also visited the science park and some of the companies there.
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He said he was impressed by Hong Kong’s developments in information technology and hoped there could be closer cooperation between the city and Saudi Arabia.
Last week, Alswaha, along with the country’s Minister of Economy and Planning Faisal Al-Ibrahim, led an official delegation to the World Economic Forum’s Summer Davos meeting in Tianjin, China.
In his address at Sunday’s event, science park chairman Sunny Chai Ngai-chiu said: “We are witnessing a golden age in Hong Kong and Saudi relations, of which both our markets offer complementary value.”
He added: “I am proud to see our park companies grow in our city and scale into Saudi Arabia, as well as the new paths being paved for Saudi companies to come to Hong Kong.”
