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Gulf investments into Hong Kong and GBA set to rise, especially in fintech
- Sovereign wealth funds from Saudi Arabia and UAE will establish Hong Kong-based funds to channel investments into GBA, a top fund manager predicts
- Hong Kong’s Fung Group is in talks to set up a US$500-million private equity fund with a Bahrain-based firm to focus on investing in GBA companies
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Hong Kong and the Greater Bay Area (GBA) can expect to see substantial growth in investment inflows from Saudi Arabia and its oil-rich neighbours, a top Bahrain-based fund manager has predicted.
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Sovereign wealth funds from Saudi Arabia and the United Arab Emirates will establish US dollar-denominated Hong Kong-based funds to channel their investments into the GBA, the rest of China and the broader Asia-Pacific, according to Hazem Ben-Gacem, the co-CEO of Investcorp, a Bahrain-based alternative investment management firm with assets of more than US$41 billion.
The Middle East’s two richest economies are on the lookout for minority stakes in medium-sized corporations, while their investment targets will include joint ventures with major conglomerates based in the GBA.
“In the coming years, we anticipate seeing increasing flows of capital, resources, talents and technology between China and Saudi Arabia, but also the Middle East in general,” Ben-Gacem told This Week in Asia. “Hong Kong will play a pivotal role in ensuring reliable financial infrastructure and global operating standards to support these engaging activities.”
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As Asia’s prime asset and wealth management centre and the largest hedge fund centre in the region, Hong Kong could be particularly “interesting” for Saudi Arabia, in terms of fintech investment and setting up family offices, Ben-Gacem said.
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