Hong Kong’s John Lee is heading to the Middle East to boost business links, but is drive too little, too late to capitalise on oil-rich region?

Visit will be watched for government’s ability to tap opportunities in Gulf states’ ambitious economic diversification plans

But economists say Hong Kong has become less appealing for Middle Eastern firms and caution Islamic law and finance may pose challenge for city’s businesses

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Hong Kong leader John Lee is to focus on the Middle East as a potential market for the city. Illustration: Lau Ka-kuen

Published: 10:00am, 4 Feb 2023Updated: 10:57am, 13 Apr 2023

Chief Executive John Lee Ka-chiu will waste no time in his mission to “tell good stories of Hong Kong” when he arrives in Riyadh, the political heart of oil-rich Saudi Arabia this weekend.

On the first night of his week-long visit to the Middle East, he will lead a 30-strong high-level team at an investment forum on Sunday to promote the city to Arab political and business leaders.

Hong Kong authorities hope to lure the world’s largest oil company, Saudi Aramco, for a secondary listing on its bourse, but this visit will also be watched for their ability to tap opportunities in the Gulf states’ ambitious economic diversification plans and in the new phase of China’s flagship Belt and Road Initiative that has begun focusing on the Middle East.

Observers said the timing of Lee’s trip to Saudi Arabia and the United Arab Emirates (UAE) was significant.

Beijing needs new momentum to boost its economy after recording the slowest growth in decades due to its strict Covid-19 containment policies, and to find ways to reduce dependency on the US dollar system.

Financial Secretary Paul Chan visited Riyadh last October when he told the Post that the city’s bourse had been reaching out to state oil producer Aramco for a secondary listing. Photo: Reuters

Meanwhile, Saudi Arabia and the UAE are going full throttle in implementing diversification plans to reduce their economic dependence on oil.

Hong Kong’s John Lee is heading to the Middle East to boost business links, but is drive too little, too late to capitalise on oil-rich region?

Visit will be watched for government’s ability to tap opportunities in Gulf states’ ambitious economic diversification plans But economists say Hong Kong has become less appealing for Middle Eastern firms and caution Islamic law and finance may pose challenge for city’s businesses

Visit will be watched for government’s ability to tap opportunities in Gulf states’ ambitious economic diversification plans

But economists say Hong Kong has become less appealing for Middle Eastern firms and caution Islamic law and finance may pose challenge for city’s businesses