Arab News, Sat, Dec 09, 2023 | Jumada Al-Uola 25, 1445
Saudi Arabia, Hong Kong sign agreement to boost direct investment
Direct investment opportunities between Saudi Arabia and Hong Kong are set to
grow after a new agreement was inked.
A memorandum of understanding focusing on greater
cooperation across funding avenues was signed in the Asian city in presence of
the Kingdom’s Minister of Investment, Engineer Khalid bin Abdulaziz Al-Falih.
The agreement aims to enhance and encourage direct
investment between Saudi Arabia and Hong Kong by facilitating the exchange of
rules and regulations related to the business environment and its developments.
The memorandum also seeks to support and promote
exhibitions and work sessions, and facilitate exchange visits and experiences in
order to enhance direct investment opportunities.
The agreement came during the visit of a
high-level Saudi delegation of government and private sector leaders to China
and Hong Kong.
The deal is the latest evidence of the Kingdom’s
growing relationship with the city, which is classed as a special administrative
region of China.
In November, Hong Kong’s stock market became the
first in the Asia Pacific region to allow investors to speculate on an exchange
traded fund investing solely in Saudi Arabia’s equities market.
The ETF tracks the FTSE Saudi Arabia Index, and
has since attracted $1 billion in initial investment, making it one of the
largest ever debuts in the territory.
Ahead of its launch in November, Paul Chan, the
financial secretary of the Hong Kong Government, said: “The asset size of this
ETF is the largest of its kind in the world, and it can be said to be a
practical example of the financial connectivity of the Belt and Road
He added: “I look forward to more two-way
co-operation on financial products between the two places in the future, so as
to make financial connectivity and capital flow wider and broader.”
In February 2023, both exchanges signed a
memorandum of understanding to collaborate in sectors such as fintech and
environmental, social, and governance, exploring listing opportunities.