Hong Kong technology companies are increasingly turning to the Middle East to expand their operations as that region has tremendous demand for technology solutions, Undersecretary for Financial Services and the Treasury Joseph Chan Ho-lim said on Monday.

Speaking in a radio program, he recalled having led a delegation to the 2025 Dubai Fin Tech Summit to promote the development of green financial technology in the Hong Kong Special Administrative Region and the United Arab Emirates.

“Representatives of some Hong Kong-based technology companies in my delegation contacted firms in the UAE to promote their businesses, while some representatives of Chinese mainland enterprises also used the opportunity to get to get in touch with their counterparts there,” Chan said.

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The SAR and some Middle Eastern countries have signed memoranda of understanding to support each other’s financial technology activities.

“I would describe Middle Eastern companies as pragmatic with clear strategies. After learning they lack relevant technical network support, they are willing to obtain solutions from Hong Kong technology companies,” he said.

Hong Kong-based on-demand delivery platform Lalamove – a privately run unicorn start-up valued at over $1 billion – said on Monday the UAE will be its 14th market worldwide. The company will launch full logistics services in Dubai and drop-off services in Sharjah and Abu Dhabi.

With the rise of e-commerce, Lalamove said it will strive to serve the logistics solution needs of small and medium-sized companies in the UAE when they are able to contribute 40 percent of the Gulf state’s gross domestic product.

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Chan said Middle Eastern firms are interested in expanding in the special administrative region.

“Hong Kong has the advantages of free capital flow and a low tax system. The city also applies the common law system which is more familiar to the Middle East, and can help Middle Eastern companies to tap the Chinese mainland market. We believe this will strengthen collaboration between Hong Kong and Middle Eastern enterprises,” he said.

If Middle Eastern companies intend to expand into Asia, then the SAR will be a good place for them to build up their markets, he said.