Various sectors in Saudi Arabia are keen to forge more tangible cooperation with Hong Kong at a faster pace, fueled by a shared desire for economic diversification and a deeper understanding of each other’s strengths developed through increased exchanges in recent years, Financial Secretary Paul Chan Mo-po said on Sunday.

Reflecting on his recent four-day visit to Riyadh, which concluded on Thursday, Chan revealed in his weekly blog that among the more than 100 financial and technology professionals who traveled with him, some are still in Saudi Arabia or plan to return in the coming weeks to further develop partnerships.

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“The visit has yielded fruitful results” and reinforced his belief that “Hong Kong has unique brand value for overseas markets”, he said.

“Hong Kong and Saudi Arabia share common ground in their development strategies,” the finance chief noted. The special administrative region is doubling down on a more diversified economy by backing technology and industry growth through a joint investment and “patient capital” approach which is with high tolerance for risk and a long-term outlook on returns.

Middle Eastern countries, including Saudi Arabia, have also beefed up their support for technology and green transformation through investment, aiming for a diversified economy.

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During his visit, the first two Exchange-Traded Funds tracking Hong Kong stock indices went public on the Saudi Exchange, with one being the largest of its kind in the Middle East. Both sides have now established two-way capital flow following the listing of Saudi Arabia’s first ETF on the Hong Kong bourse in November last year .

In December, the Future Investment Initiative Institute, which is run by Saudi Arabia’s main sovereign wealth fund, held its first Asian summit in Hong Kong. Chan said they are actively discussing bringing the summit back to the SAR next year to attract global financial leaders.

Middle Eastern industry insiders also emphasized the advantages of Hong Kong’s financial markets, including its ability to navigate through multiple economic cycles and challenges, serving as a reference for the Middle East in driving financial market reform and development, Chan said.

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Given the Middle East’s growing financing need for development projects, the financial secretary said Hong Kong could seize the opportunity to grow its infrastructure financing and offer more Islamic finance products and services.

He also stressed the importance of speeding up the process for companies to list on both exchanges, saying this would not only attract more Middle Eastern capital to Hong Kong, but also boost market liquidity and create more investment opportunities for Hong Kong investors looking to tap into the Middle Eastern market.

As for innovation and technology, the Hong Kong Monetary Authority signed a memorandum of understanding with the Saudi Public Investment Fund to establish a $1-billion investment fund. This fund will target companies in sectors like manufacturing, renewable energy, fintech and healthcare from Hong Kong and other cities in the Guangdong-Hong Kong-Macao Greater Bay Area that operate in Saudi Arabia, so as to promote the internationalization of these businesses.

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In addition, several Hong Kong startups signed memorandums with Middle Eastern companies and institutions, including a fintech firm from Hong Kong’s incubator Cyberport that inked a commercial agreement.

Contact the writer at irisli@chinadailyhk.com