International consulting firm Deloitte is betting big on the Hong Kong Special Administrative Region’s growth potential, planning to invest HK$500 million ($64.34 million) over the next four years to participate in the city’s economic transformation.

The Big Four firm on Friday said the investment will focus on “strategic growth areas” including fintech, artificial intelligence, and capital markets, aiming to reinforce Hong Kong’s role as a global financial center and bolster its rise as an innovation and technology hub. The plan is also expected to create around 1,000 jobs.

“For over 50 years, Deloitte has run alongside Hong Kong,” said Dora Liu Minghua, chief executive officer of Deloitte China. “We remain deeply confident in this market and powerfully optimistic about Hong Kong’s future.”

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Hong Kong’s economy saw a strong improvement in the third quarter. The SAR’s Q3 GDP increased 3.8 percent in real terms compared to the same period the previous year, with private consumption expenditure rising by 2.1 percent, according to estimates released by the Census and Statistics Department on Friday.

The city’s robust performance was driven by a continued surge in exports and sustained expansion in domestic demand, a government spokesperson said.

“The renewed interest rate cuts in the United States since this September are conducive to boosting asset market sentiment. Coupled with a gradual recovery in consumption confidence and also a visible improvement in business sentiment from earlier this year, these developments should lend support to local consumption and investment activity,” the spokesperson added.

Edward Au Chun-hing, Deloitte China’s southern region managing partner, echoed the sentiment, saying that confidence in the local economy has rebounded. However, he noted that some sectors have remained exposed to the broader uncertainties, and emphasized the need for industry upgrading and transformation.

“It’s important for industries to innovate their business model and improve customer experience, so as to attract more investors and consumers,” he said. “Companies should also keep on transforming to better match consumer needs.”

According to Deloitte’s latest report, released on Friday, Hong Kong’s economy is facing a few key challenges, such as geopolitical tensions, constrained industrial transformation, and high-end talent shortage.

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The report suggests four growth engines for the city's future development: driving financial innovation, further supporting Chinese mainland enterprises' global expansion, bolstering regional I&T collaboration, and accelerating the green transition.

Thierry Delmarcelle, chief strategy and innovation officer of Deloitte Asia Pacific, said Hong Kong could serve as a catalyst for regional economic transformation, with the four pillars helping to deepen regional connectivity and drive innovation.

"Ongoing shifts in global geopolitics, China's accelerated path toward high-quality development, and a stronger focus of Asia Pacific businesses on innovation and on cross-border opportunities present Hong Kong with a unique opportunity for being the catalyst of the transformation of Asia Pacific economies,” Delmarcelle added.

Contact the writer at gabylin@chinadailyhk.com