Blog

Starting with the Saudi Super Cup

Last night, the Saudi Super Cup final was held at the Hong Kong Stadium. I watched this wonderful event alongside 30,000 spectators, many of whom were visitors who travelled all the way to watch the event. The atmosphere was lively. This was the first time the tournament was held in East Asia. The fact that the Saudi organisers chose Hong Kong as the venue carries special significance. They told me that they recognised not only Hong Kong's international character, but also our role and status within the Greater Bay Area, and indeed across China and Asia.

Officiating at the award presentation ceremony after watching the Saudi Super Cup final at the Hong Kong Stadium last night.

Interacting with guests from Saudi Arabia during the Saudi Super Cup final.

Officiating at the award presentation ceremony of the Saudi Super Cup final.

Hong Kong's engagement with the Middle East has been deepening and broadening in recent years, not just in finance and trade but also in arts, culture and sports. In the past two years, in addition to mega sports events like the Saudi Super Cup and LIV Golf, there have been more reciprocal visits among cultural and arts practitioners. For instance, this March, we held a Hong Kong film screening event in Dubai featuring a local film that grossed over HK$100 million in Hong Kong. The event attracted very positive response. These exchanges have deepened our understanding of each other's culture, history and customs, and laid a more solid foundation for future co-operation between Hong Kong and the Middle East across various fields.

In fact, travel between Hong Kong and the Middle East is also increasing. Last year, the number of visitor arrivals from countries in the Gulf region rose by 70% year-on-year. In the first seven months of this year, the figure rose by more than 50%. The Hong Kong-Riyadh direct passenger service, relaunched last October, is full from time to time, and there is potential for more frequent service. Last year, bilateral trade between Hong Kong and the Gulf region reached HK$150 billion, with an average annual growth of around 11% over the past five years. Hong Kong was also the United Arab Emirates' (UAE) seventh-largest trading partner. Besides having an Economic and Trade Office (ETO) in Dubai and Invest Hong Kong's consultant offices in Cairo, Egypt and Izmir, Turkey, we are actively working to open an ETO in Riyadh to further strengthen our economic, trade and cultural ties with the Middle East and North Africa.

Meeting with the Consul-General of Saudi Arabia, Mr Mazin Hamad Mohamad ALHIMALI who assumed office earlier this year.

Hong Kong's deepening engagement with the Middle East comes at an opportune time. Our country has been actively promoting and stepping up co-operation with the Global South for common development and mutual benefit. This has allowed Hong Kong to fully leverage its role as a "super connector" and ‘super value-adder' under the "one country, two systems" arrangement. Many Middle East countries have formulated visionary development strategies aimed at economic diversification beyond the energy industry, as well as accelerating infrastructure and industrial development, particularly in finance as well as innovation and technology (I&T). These would bring new opportunities to Hong Kong in finance, I&T and other professional services.

At the same time, recent geopolitical developments have prompted investors in the Middle East to diversify their allocations beyond the US and EU. Being internationalised and highly connected with the Mainland market, Hong Kong has market operations and regulatory standards that are seamlessly aligned with the best international practices. This has made us an ideal platform for diversified asset allocation and wealth management.

The HKSAR Government has been stepping up efforts to deepen ties with the Middle East. In May this year, the Chief Executive led a business delegation to Qatar and Kuwait, and 59 memoranda of understanding (MoUs) and co-operation agreements were signed. In recent years, I also visited countries in the Middle East and North Africa such as Saudi Arabia, Bahrain and Morocco. I attended the Future Investment Initiative (FII) conference twice in Saudi Arabia; in 2023, we successfully invited the FII to host its Asian edition in Hong Kong – the first time it was held in Asia. Last year, I led a delegation of over 100 financial and tech representatives to Saudi Arabia, and we witnessed the signing of various co-operation project agreements and MoUs in finance and I&T. Currently, two exchange-traded funds (ETFs) tracking the Saudi Arabia market are listed on Hong Kong Exchanges and Clearing Limited (HKEX), and two ETFs tracking Hong Kong stocks are listed on the Saudi Exchange. They symbolise the capital market connectivity between the two economies. As of last week, the two Hong Kong stock ETFs had a combined market value of over HK$16 billion, having gained around 30% since their listing.

Hong Kong's stock market has performed well since late September last year, and this has drawn the interest of capital from the Middle East in the Hong Kong financial market. They participated as cornerstone investors in a number of recent initial public offerings in Hong Kong, with commitments of over US$100 million. This indicates that Hong Kong stocks are attracting more diverse sources of new capital. According to data form the International Monetary Fund, investment positions in Hong Kong securities held by Saudi Arabia, Kuwait and Bahrain rose to US$6.3 billion in 2023, with a five-year compound annual growth rate of about 17%.

Co-operation between regulatory authorities and market stakeholders in Hong Kong and the Middle East has also continued to deepen. During the visit to Saudi Arabia last year, I held roundtables with the Saudi Capital Market Authority and industry representatives of the two places. This year, there have been multiple reciprocal visits to Hong Kong. Notably, in May this year, HKEX and the Saudi Tawadul Group co-hosted the "Hong Kong-Saudi Capital Markets Forum". In the same month, the Securities and Futures Commission entered into an MoU with the Abu Dhabi Financial Services Regulatory Authority to enhance regulatory information exchange.

Countries in the Middle East are seeking to accelerate infrastructure development, adopt more innovative technologies and promote industry development. This would create ample opportunities for Hong Kong's start-ups, tech firms and professional service providers, thereby opening up broader scenarios for the transformation and commercialisation of research and development outcomes for tech firms. Last year, several local tech start-ups joined my delegation to Saudi Arabia, and those engaged in green technology, smart cities and renewables have done especially well in expanding into the Middle East market. One such local start-up, which offers smart sensing solutions, has expanded its business into the Middle East subsequent to last year's visit. It will take part in the largest regional infrastructure project.

Speaking at the opening ceremony of the "Belt and Road Software Pavilion (Hong Kong) 2025" last week.

Touring the exhibition area of the "Belt and Road Software Pavilion (Hong Kong) 2025" with the Consuls-General of some Belt and Road countries in Hong Kong.

Beyond the Middle East, Hong Kong's ties with Central Asia are also growing. This week, a natural resources company based in Kazakhstan will list in Hong Kong. It will be the first simultaneous listing on HKEX and the Astana International Exchange (AIX), and the first RMB-denominated stock in Central Asia. It is a new page of co-operation between the financial markets of Hong Kong and Central Asia as well as RMB internationalisation.

Looking forward, in the second half of the year, HKSAR Government officials will continue to promote to the world the strengths of Hong Kong and the Mainland, and the business opportunities we offer. That includes leading delegations to overseas regions to strengthen multi-level and cross-sector engagement and co-operation with emerging markets, thereby creating new opportunities for our enterprises and institutions.

August 24, 2025