HKEX CEO Nicolas Aguzin (left) and Saudi Tadawul Group CEO Khalid Al Hussan sign a memorandum of understanding during the Hong Kong delegation's visit to Saudi Exchange in Riyadh on Feb 5, 2023. (PHOTO / HKEX)

HONG KONG – The Hong Kong Exchanges and Clearing Limited (HKEX) announced on Monday that it signed a Memorandum of Understanding with the operator of Saudi Arabia’s stock exchange to explore opportunities for the mutual benefit of their financial markets.

In a statement, the HKEX said it signed the MOU with the Saudi Tadawul Group Holding Company to explore opportunities in Fintech, ESG and cross listings, and a number of other areas of interest to both exchanges.

HKEX Chief Executive Officer Nicolas Aguzin said the Hong Kong Special Administrative Region and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Chinese mainland markets through the Connect programs

“We are delighted to be signing an MOU with Saudi Tadawul Group, reflecting HKEX’s ongoing commitment to driving global connectivity and shaping a successful shared sustainable future,” HKEX Chief Executive Officer Nicolas Aguzin was quoted as saying in the statement.

“The Kingdom of Saudi Arabia, and the broader Middle Eastern region, are one of the world’s most dynamic and exciting economic and innovation hubs and also home to some of the fastest growing investor groups in the world,” he added.

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Aguzin said the Hong Kong Special Administrative Region and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Chinese mainland markets through the Connect programs.

“This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation,” he said.

Khalid Al Hussan, CEO of Saudi Tadawul Group, lauded the signing of the agreement, noting that there has been increasing interest from investors in Asia in the Saudi capital market.  

“As we seek to position the Saudi capital market as an investment hub between East and West, we are seeing increased interest from issuers and investors in Asia. This MOU brings us one step closer towards enabling cross listings and other areas of collaboration between Saudi Arabia and Hong Kong,” he said.

Hong Kong Chief Executive John Lee Ka-chiu (second left) and Minister of Investment of Saudi Arabia Khalid A. Al-Falih (second right) witness the signing of the memorandum of understanding between the Hong Kong Exchanges and Clearing Limited and the Saudi Tadawul Group Holding Company during the Kingdom of Saudi Arabia-HK Investment Forum in Riyadh on Feb 5, 2023. (PHOTO / HKEX)

“With global capital markets evolving, it is moreover important for us to work together to exchange information and align on best practice to elevate our capital markets and enhance the experience for issuers and investors alike,” he added.

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The HKEX is one of the partner organizations of the Task Force on Promoting and Branding Hong Kong, dedicated to sharing information and opportunities about the city. It joined the senior HKSAR delegation, led by Chief Executive John Lee Ka-chiu, in its visit to Saudi Arabia and the United Arab Emirates.