UAE And Hong Kong Strengthen Economic Ties Through Investment Opportunities, Says InvestHK Official

Economic relations between Hong Kong and the UAE are on a positive trajectory, according to Charles Ng, Associate Director-General of Investment Promotion at Invest Hong Kong (InvestHK). He attributes this growth to shared interests, strategic locations, and ambitious development goals. Ng described the UAE as a crucial economic partner in the region, highlighting its advanced regulatory framework and dynamic business environment.

Ng noted that bilateral trade between Hong Kong and the GCC reached approximately US$21.6 billion in 2023. A significant portion of this trade is due to increasing economic exchanges between Hong Kong and the UAE. The UAE serves as a launchpad for companies aiming to enter GCC and African markets. This strategic position enhances its attractiveness for businesses looking to expand their reach.

UAE investors, including major corporations and family offices, are showing growing interest in exploring opportunities in Hong Kong. InvestHK's Dubai office provides tailored programmes and direct support to facilitate market entry and expansion for these investors. This support aims to strengthen economic ties further by making it easier for UAE businesses to establish a presence in Hong Kong.

The financial services sector remains a primary area of cooperation between the two regions. There is strong momentum in FinTech, advanced manufacturing, logistics, and Islamic finance. Ng pointed out that UAE banks are increasingly interested in setting up offices in Hong Kong. Both sides are working together on regulatory frameworks to enhance the sector's overall appeal.

As global financial hubs, both economies focus on financial services investments. With expanding trade between Asia and the Middle East, there is rising demand for banking, insurance, and trade finance services. Hong Kong offers a strategic gateway for regional and international business activities in these areas.

Incentives for Investors

Hong Kong is actively working to attract family offices with initiatives like the 2023 incentive package. This includes a Capital Investment Entrant Scheme offering residency for a minimum investment of $3.8 million. The transparent regulatory environment and diverse financial products make Hong Kong appealing to regional investors seeking new opportunities.

The city also aims to attract small and medium-sized enterprises from the UAE, particularly those involved in hospitality, halal food, jewellery, and cultural products. Support measures include tax incentives and investment advisory services designed to facilitate business establishment and growth.

Dubai's Role as an Industrial Base

InvestHK operates an investment promotion unit in Dubai that assists Emirati investors from planning through business establishment phases. Ng believes that collaboration between the UAE and Hong Kong could unlock potential in innovation, entrepreneurship, and sustainable growth.

Dubai is well-positioned as a regional industrial base due to its advanced infrastructure and progress in digital manufacturing. Chinese firms increasingly view Dubai as a strategic entry point into Middle Eastern and African markets with over 3.7 billion consumers combined.

This collaboration between Hong Kong and the UAE holds promise for unlocking new avenues of growth across various sectors while strengthening existing economic ties.

With inputs from WAM