The Hong Kong Monetary Authority (HKMA) and the sovereign wealth fund of Saudi Arabia will launch a US$1 billion fund to help companies from Hong Kong and other cities in the Greater Bay Area expand into the Middle Eastern country, Financial Secretary Paul Chan Mo-po said on Tuesday.
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The move was expected to contribute to the development of non-oil economic sectors in Saudi Arabia, he said.
“Next month, a major Saudi development company will be hosting a roadshow in Hong Kong to seek strategic partners and professional service providers to support their infrastructure development,” Chan added at a conference discussing Hong Kong’s role in the changing global economy. He did not specify the company.
The HKMA – the city’s de facto central bank – and the Public Investment Fund of Saudi Arabia agreed to launch the fund in October 2024 with the signing of a memorandum of understanding in Riyadh.
The fund is expected to explore investments in manufacturing, renewables, fintech and healthcare, supporting the localisation in Saudi Arabia of Chinese companies that are looking to expand overseas from Hong Kong and other cities in the Greater Bay Area.
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The push comes as a growing number of Chinese companies are seeking international expansion while the Gulf Cooperation Council – an economic bloc comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – has pledged to invest US$100 billion in renewable energy by 2030.