The ongoing conflict in the Middle East and its impact have highlighted the advantages of the Hong Kong Special Administrative Region under the “one country, two systems” principle as a ”super-connector” and a “super value-adder”, the city’s leader said on Tuesday.

“Overall, I think we will face challenges, but in the medium to long term, opportunities will outnumber challenges,” Chief Executive John Lee Ka-chiu said while addressing members of the media ahead of the Executive Council meeting.

The HKSAR remains stable and safe and its connections with the Chinese mainland and the international markets give it added strength to ensure that investors have secure business opportunities, according to Lee.

Saying the Middle East was “developing fast economically", Lee stressed that the HKSAR has forged good relations with the region for many years, with many projects completed or in progress while investment capital flowed freely between the two places.

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Emphaszing the HKSAR's advantages have become even more prominent during the conflict, such as no restriction in the flow of capital and people, the CE reiterated that the pace of cooperation with the Middle East will not slow down, and that efforts will be made to engage more actively with Middle Eastern investors who seek diversification by finding safe havens providing opportunities and security.

To mitigate the shockwave from heightened tensions in the region on the city’s energy needs and prices, Lee said the SAR government has contacted suppliers to ensure sufficient supply and an adequate stockpiles, as well as contingency plans to prepare for different scenarios, including considering alternative supplies.

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He added that the Competition Commission will also closely monitor market operations and go after any violations of fair competition or price collusion.