Hong Kong companies are increasingly looking to Saudi Arabia as a strategic base for supply chain expansion and risk diversification. According to an HSBC survey reported by the South China Morning Post, nearly one in five Hong Kong firms selected Saudi Arabia as their preferred destination for diversifying supply chains, ahead of mainland China, which attracted about 14 per cent. Interest is particularly strong among technology, media, and telecommunications businesses.
This growing focus on Saudi Arabia is being reinforced by new financial cooperation initiatives. As reported by the same sources, a proposed US$1 billion fund between the Hong Kong Monetary Authority and Saudi Arabia’s sovereign wealth fund is expected to support companies from Hong Kong and other Greater Bay Area cities in entering the Saudi market. Hong Kong Financial Secretary Paul Chan Mo-po has indicated that this fund will be launched soon.
Recent high-level visits have helped convert interest into concrete partnerships. Last month, Paul Chan led a 40-member delegation to Riyadh, resulting in five memorandums of understanding focused on investment and technology collaboration. Among them, Maphive Technology signed an agreement with a subsidiary of Olayan Saudi Holding in the hospitality and events space, while digital marketing start-up GoGoChart reached an initial understanding with an investment fund in the kingdom.
