Public Investment Fund: Hong Kong's Major Deals at FII in Riyadh

Public Investment Fund Catalyzes New Partnerships

In a landmark week at the Future Investment Initiative (FII) summit in Riyadh, Hong Kong secured billions of dollars in commitments thanks to the public investment fund of Saudi Arabia. Key highlights included a US$1 billion partnership between the Saudi sovereign wealth fund and the Hong Kong Monetary Authority, aimed at bolstering companies in the Greater Bay Area looking to expand into the Middle East.

Strategic Collaboration and Investment Opportunities

As part of this collaborative effort, the Saudi incubator revealed a US$300 million fund for start-ups at the Hong Kong Science and Technology Park (HKSTP). These start-ups are looking at sectors such as artificial intelligence, food technology, and biomedical science.

• ETFs worth US$1.8 billion have commenced trading on the Tadawul exchange.
• A direct flight route between Hong Kong and Riyadh, restored by Cathay Pacific Airways, enhances connectivity.

Financial Secretary Paul Chan Mo-po stated during a media briefing that the successful delegation of 110 officials emphasized significant Middle Eastern investment into Hong Kong. Investment growth was further boosted with two start-ups nearing multimillion-dollar deals. Chan highlighted that Saudi investors expressed interest not just in green tech, but also in developing infrastructure under the Saudi Vision 2030 programme.

Investment Landscape and Future Prospects

The capital markets are thriving as Middle East investors seek diversification through access to Hong Kong stocks. Hong Kong will further facilitate this by opening an office in Riyadh to support fundraising initiatives.