While the global economy continues to shift, relations between Saudi Arabia and Hong Kong have quickly emerged as a dynamic and mutually strategic partnership. Saudi Arabia is increasingly focusing on diversifying its economy away from oil and integrating itself better into the global financial system under its Vision 2030 strategy. Hong Kong, meanwhile, is aiming to broaden its international economic links and position itself as a vital bridge between East Asian capital and the Gulf markets. Particularly over the past three years, a series of agreements has deepened economic engagement.
The momentum for economic cooperation accelerated in 2023 when Hong Kong’s Invest Hong Kong and Saudi Arabia’s Ministry of Investment signed a memorandum of understanding to promote investment cooperation. The agreement set the stage for joint business missions, the exchange of market intelligence, and participation in each other’s flagship events. Notably, both sides continue to work toward an investment promotion and protection agreement (IPPA) that would provide greater legal and regulatory clarity for investors on both sides.
These actions are helping to create the foundations for future economic cooperation. Delegates have emphasized that these agreements are part of a long-term vision to integrate markets, encourage reciprocal investment, and increase the presence of Hong Kong firms in Saudi Arabia and vice versa.
A positive outcome of this closer relationship came in 2024, when the Hong Kong Monetary Authority and Saudi Arabia’s Public Investment Fund (PIF) — one of the most significant sovereign wealth funds in the world — announced a $1 billion co-investment fund. The fund was created to support Hong Kong companies in expanding into Saudi Arabia, targeting sectors critical to both countries’ future growth, including manufacturing, renewable energy, fintech, advanced healthcare, and technology services.

The global economy is becoming increasingly multipolar. As both economies navigate this increasingly complex landscape, their partnership demonstrates how well-considered political agreements and a drive for deeper financial integration can create durable economic bonds

The fund’s establishment is highly symbolic, reflecting Saudi Arabia’s ambition to use Hong Kong as a conduit to expand its Asia investments and leverage the region’s expertise, while at the same time giving Hong Kong firms a platform to participate in the massive infrastructure and development projects under Vision 2030. These include megacities like Neom, renewable energy companies, and advanced logistics hubs.
As well as direct investment opportunities, the capital markets of Hong Kong and Saudi Arabia have become increasingly integrated. Earlier this year, Hong Kong listed its first exchange-traded fund (ETF) tracking Saudi government bonds — a milestone for Middle Eastern fixed-income products in Asia. This listing not only gives Asian investors easier access to Saudi debt markets but also further underlines Hong Kong’s intentions to become a regional hub for Islamic financial instruments.
In late 2024, Saudi Arabia also launched the Albilad CSOP MSCI Hong Kong China Equity ETF, a sharia-compliant fund that invests in Chinese companies listed on the Hong Kong stock exchange. It raised over $1.2 billion when it launched, making it the largest Islamic ETF in the Middle East at the time. Hong Kong, in turn, gained approval to offer a sharia-compliant Hang Seng Index ETF in the Saudi market, opening its blue-chip stocks to investors in the Middle East seeking products aligned with Islamic financial principles.
Economic ties have been enhanced by visits of high-level business delegations. In early 2023, a delegation of over 30 Hong Kong investors traveled to Riyadh to explore opportunities in sectors aligned with Vision 2030. In turn, Saudi investment institutions have shown growing interest in using Hong Kong as a base for serving mainland clients, particularly in trade finance and capital markets.
Hong Kong has also hosted the Future Investment Initiative summit — dubbed the “Davos in the desert” — bringing Saudi policymakers and business leaders into direct dialogue with Asia’s financial elite. The PIF, meanwhile, has for several years maintained a physical presence in Hong Kong, using it as a hub to engage with Asian markets.
On several different fronts, the future appears bright for Saudi-Hong Kong relations. First, deeper legal and regulatory frameworks via the anticipated IPPA are likely to reduce barriers to cross-border investment further. Second, the range of mutually accessible financial products will likely grow — especially in the Islamic finance sector — further expanding Hong Kong’s reputation as a hub for international capital. Third, the political momentum, reinforced by regular summits and delegations, will continue to sustain business confidence and encourage more joint ventures.
The relationship’s significance goes beyond bilateral benefits. For Saudi Arabia, Hong Kong is an essential access point to Chinese capital, technology, and know-how. For Hong Kong, Saudi Arabia provides a gateway to the vast investment opportunities of the broader Gulf market, which is tied to some of the most ambitious economic transformation plans the world has ever seen.
The global economy is becoming increasingly multipolar. As both economies navigate this increasingly complex landscape, their partnership demonstrates how well-considered political agreements and a drive for deeper financial integration can create durable economic bonds. If this current momentum continues, Saudi Arabia and Hong Kong may even become a model for how geographically distant economies can strategically align to the benefit of all parties concerned.

The author is a businessman with experience working in Hong Kong, the Chinese mainland, and Saudi Arabia. He currently resides in Saudi Arabia.

The views do not necessarily reflect those of China Daily.