CGCC's business delegation to the Middle East has been useful in promoting exchange and cooperation between Hong Kong and the Middle East. Through similar delegations and exchange activities, the Chamber will continue to strengthen ties with the political and business sectors in the Mainland and the B&R regions.

It was 10 years ago when President Xi Jinping put forward the “Belt and Road” Initiative (B&R). Since then, the Hong Kong business sector's involvement in the B&R markets has been ever-increasing. When it comes to promoting trade cooperation and identifying business opportunities in the B&R markets, CGCC plays an active role. Just last month, we organized a trade delegation to three Middle Eastern countries, namely Kuwait, Qatar and the United Arab Emirates.

Fostering ties and exchange with the Middle East

The Middle East is an important node in the B&R. The region's intensified efforts to promote diverse economic development in recent years have created massive new opportunities for B&R and even worldwide markets. To date, the Central Government has signed B&R cooperation documents with 20 Arab countries and carried out over 200 joint large-scale projects. Meanwhile, the HKSAR Chief Executive's visit to the Middle East back in February brought relations between Hong Kong and the Middle East to new heights. Indeed, during CGCC's delegation last month, we experienced the zealous support of the Middle Eastern countries for the B&R Initiative and their interest in the Hong Kong and Mainland markets.

Capitalizing on Hong Kong's “super connector” role, the HKSAR Government can try to attract Mainland and Middle Eastern businesses to set up their regional headquarters in Hong Kong, and make use of the city's strengths in investment, financing and professional services to promote B&R projects. The Hong Kong Trade Development Council can contribute by supporting two-way investments between the Mainland and the B&R regions which cover the Middle East.

CGCC has signed memoranda of understanding with Kuwait and the Dubai Chamber of Commerce, with a view to strengthening cooperation on all fronts between our respective business communities through exchange of trade information, joint exhibitions, talks, and other activities. The Dubai Chamber of Commerce has expressed plans to set up an office in Hong Kong, which will provide a new communication platform for businesses in both cities and nearby markets.

Leveraging Hong Kong's strengths in finance

In recent years, the Middle East region has been actively attracting investments to enhance economic resilience and potential. Our impression of the region's business environment during the recent trip is a highly positive one. We were especially impressed by our exchange with Alghanim, one of the biggest companies in Kuwait, which offered us a glimpse into the company's wide-ranging businesses.

Hong Kong can certainly take up an important role in supporting the investments and financing of projects in the B&R including the Middle Eastern markets. For instance, the Chinese banks in Hong Kong can pioneer RMB-denominated loans for B&R projects.  We hope the Central Government will also support the issuing of B&R bonds in Hong Kong, which will attract fund-raising by big B&R projects in Hong Kong's capital market.

The large corporations and sovereign wealth funds that our delegation visited in the Middle East all showed great interest in the investment opportunities in the Mainland, and in particular, the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area). Hong Kong should proactively appeal to Middle Eastern companies to get listed in Hong Kong. It should also promote green bonds to turn Hong Kong into the green financial hub under the B&R.

Expanding I&T business opportunities in partnership

In recent years, the Middle East has stepped up promoting the growth of innovation and technology (I&T). “Kuwait Vision 2035”, for example, promises strong support for scientific and technological development. Given Hong Kong's high capability in basic research, the city's I&T platforms can team up with their counterparts in the Greater Bay Area to provide all-round research support for Middle Eastern businesses and help their start-ups to tap into the global market.

With the Greater Bay Area focused on promoting the developments of advanced technology and advanced manufacturing, Hong Kong can help businesses from the B&R regions explore I&T investment opportunities and set up production sites in the Greater Bay Area, promote the commercialization of scientific research results, and sell products in the Greater Bay Area and even the entire China.

To conclude, CGCC's business delegation to the Middle East has been useful in promoting exchange and cooperation between Hong Kong and the Middle East and in identifying opportunities in the B&R markets. Through similar delegations and exchange activities, the Chamber will continue to strengthen ties with the political and business sectors in the Mainland and the B&R regions.