Exclusive | Saudi Arabia to deepen ties with Hong Kong, using city as the bridge to mainland China’s ‘world class’ digital prowess, minister says

Areas of collaboration include fintech, tech entrepreneurship and strategies to attract the funding of venture capitalists (VC)
Health sciences and biotechnology, the environment, cloud computing, artificial intelligence and smart cities are other areas for partnerships

Saudi Arabia

Dylan Butts

Published: 9:00pm, 2 Jul 2023

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Saudi Arabia plans to deepen its collaboration with Hong Kong, using the city as the bridge to mainland China to spur its transformation under the Vision 2030 economic plan, said the minister in charge of the kingdom’s digital infrastructure.

Key areas of collaboration with Hong Kong include fintech, technological entrepreneurship and strategies to attract the funding of venture capitalists (VC), said the Saudi Minister of Communications and Information Technology Abdullah Al-Swaha.

Health sciences and biotechnology, the environment, cloud computing, artificial intelligence (AI) – specifically generative AI – and smart cities are other areas that the kingdom is keen to strike partnerships on, he said.

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Saudi Arabia to deepen ties with Hong Kong, use city as bridge to China’s tech prowess: minister

“[Hong Kong and Saudi Arabia] are going through very promising transformations, where both economies are financial hubs in their own regions,” Al-Swaha said during an interview with the Post. “We have an opportunity to build an innovation bridge, to leapfrog into the future with an innovation-based economy.”

The minister since 2017, Al-Swaha picked Hong Kong as the starting point of his whirlwind tour through China, where the digital transformation and proliferation of information and communications technology (ICT) have impressed him.

Saudi Arabia’s Minister of Communication, Information and Technology Abdullah Al-Swaha (left) and Hong Kong’s Chief Executive John Lee Ka-chiu (right) met ahead of the “One Gateway Shared Vision - Hong Kong x Saudi Arabia” event at Hong Kong Science and Technology Park (HKSTP) in Shatin on July 2, 2023. Photo: Handout

ICT development requires a robust digital infrastructure, such as a 5G network, which Saudi Arabia has been keen to source from Chinese companies, even if Huawei Technologies and ZTE are targets of United States sanctions amid deteriorating US-China relations.

Saudi Arabia is “pro-partnership and pro-openness”, willing to do business with “any partner that can comply with our security and regulatory requirements”, said the minister, the former CEO of Cisco Saudi Arabia before joining the public sector. He is expected to visit Huawei in Shenzhen, after Hong Kong.

The “world class” transformation of information and communications technology (ICT) on the mainland and Hong Kong “is a success story” that Saudi Arabia is keen to “replicate and explore partnerships with”, he said. “That is what we’re trying to achieve during this visit.”

Saudi Arabia’s Minister of Communications & Information Technology Abdullah Al-Swaha and Hong Kong’s Chief Executive John Lee Ka-chiu, during the “One Gateway Shared Vision – Hong Kong x Saudi Arabia” event at Hong Kong Science & Technology Park (HKSTP) on July 2, 2023. Photo: Facebook/John Lee

“The current term of the Hong Kong government has put a priority on revitalising our relations with Saudi Arabia – and the Middle East in general,” Chief Executive John Lee Ka-chiu said during a gala dinner at the HKSTP.

The city’s Information and Technology (I&T) Development Blueprint, unveiled six months ago, outlines Hong Kong’s commitment to new industrialisation and its ambition as a global I&T centre, Lee said.

Part of that blueprint includes consolidating Hong Kong’s role as a bridge connecting mainland China with the world, in what Lee has termed a “value-added super connector.” Hong Kong will host a Belt and Road Summit in September, with a dedicated Middle East session for the first time, Lee said.

(L-R) Sun Dong, Hong Kong’s Secretary for Innovation, Technology and Industry Abdullah Al-Swaha, Saudi Arabia’s Minister of Communications & Information Technology; Hong Kong’s Chief Executive John Lee Ka-chiu and Faisal Alkhamisi, Founding Partner of eWTP Arabia Capital, at the “One Gateway Shared Vision – Hong Kong x Saudi Arabia” event at Hong Kong Science & Technology Park on 2 July 2023. Photo: Sam Tsang

Private-sector entrepreneurs are seizing the moment to tap the opportunities offered by warming China-Middle East ties, after the December 2022 visit to the Saudi capital Riyadh by Chinese President Xi Jinping, and Hong Kong Chief Executive Lee’s visit in February.

The Saudi Arabia-China Entrepreneurs Association, a private-sector guild launched during the MCIT’s LEAP 2023 conference in February, would set up its head office in Hong Kong, sources said last week.

Eleven Hong Kong companies including eight located at the Hong Kong Science and Technology Park (HKSTP) signed agreements with eWTP Arabia Capital to explore opportunities to enter the Saudi market and join the association.

Among the 11 were aviation training and education tech solutions company Aerosim (HK), the robotics company FJ Dynamics International, the AI digital solutions provider FreeD Group and the AI drugs research and development company XtalPi.

Biotechnology, where Hong Kong is carving out a niche as the world’s largest funding hub for pharmaceutical start-ups after the Nasdaq, is another area of potential collaboration.

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“There are similar challenges in healthcare, where we look to [our] partners to tackle such [diseases] as Type II diabetes, chronic diseases, the prevention and prediction of cancer,” the minister said.

An electrical engineer by training, the minister is also in charge of building Saudi Arabia’s digital workforce and talent infrastructure. China is a “key partner” in “skilling and upskilling” the kingdom’s 340,000-strong technology workforce, helping to double the tech-savvy population in five years, the minister said.

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Cooperation in technology and digital talent is “a cornerstone” for helping China and Saudi Arabia achieve their respective development strategies, added Al-Swaha. Saudi Arabia wants to “harmonise” the kingdom’s Vision 2030 with China’s Belt and Road Initiative, he said.

As Chinese companies work to expand their footprint in the Middle East, Saudi Arabia has been returning the favour via investments in Chinese stocks listed on the Nasdaq and in Hong Kong, including Pinduoduo, the AI giant SenseTime, and this newspaper’s owner Alibaba Group Holding.