As Hong Kong Chef Executive John Lee Ka-chiu visits Kuwait from today through Thursday, it has been widely reported that the Kuwait Investment Authority (KIA) is among 20 cornerstone investors, including Sinopec, in the Hong Kong listing of Contemporary Amperex Technology Co Ltd (CATL).

CATL aims to raise at least HK$31.01 billion ($3.98 billion), and the offering could be the biggest in the world this year and the largest in Hong Kong since Midea Group raised $4.6 billion last year.  

According to reports quoting the prospectus, the 20 cornerstone investors, led by Sinopec and KIA, subscribed to buy CATL shares worth about $2.62 billion. Cornerstone investors are entitled to a guaranteed allocation in stock offerings if they agree not to sell their shares, known as a lockup, typically for six months.

Ahead of Lee’s departure for the Middle East, Hong Kong General Chamber of Commerce chairman Agnes Chan Sui-kuen was quoted as saying, “Hong Kong aims to leverage this visit to promote itself as the primary listing hub for Middle Eastern firms.” KIA’s prominent positioning in the CATL listing revealed this week imbues her remark with much significance.

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According to Sovereign Wealth Fund Institute data, of the world’s 10 largest sovereign wealth funds, four are based in the Middle East, with their total assets of $3.5 trillion. KIA ranks fifth in the world with assets managed at around $1 trillion. Founded in 1953, the KIA is the world’s oldest sovereign wealth fund. According to an International Monetary Fund December 2024 report, KIA “assets are estimated to have risen to 500 percent of GDP at end-FY2023/24”. World Bank April 2025 data suggest Kuwait has a population of 4.9 million with a GDP of $161.8 billion.

The Hong Kong Trade Development Council’s (HKTDC) 2024 estimates indicate that in the Middle East, Kuwait was Hong Kong’s sixth-largest trading partner; fifth-largest export market and seventh-largest import market.

Last November, Kuwait Direct Investment Promotion Authority (KDIPA) received a trade HKTDC delegation. In February, Hong Kong’s Financial Services Development Council and Kuwait’s Capital Markets Authority signed a memorandum of understanding to strengthen financial ties. In April 2025, during the fifth round of the China-Kuwait Political Consultations, economic relationship was in focus.

Clearly, there is a bedrock of policy initiatives that could leverage respective strengths to harness, among other things, economic synergy.

Kuwait’s Arab Times quoted HKTDC Chairman Peter Lam Kin-ngok as saying, “Through this mission, we aim to unlock new avenues of cooperation with local partners under the ambitious framework of Kuwait Vision 2035, leveraging Hong Kong’s world-class strengths and professional services.”  

A Fitch ratings report from March 2025 points out, “Kuwait’s external balance sheet remains the strongest of all Fitch-rated sovereigns. We forecast its sovereign net foreign assets will rise to 601 percent of GDP in 2025, from an estimated 582 percent of GDP in 2024, more than 10 times the ‘AA’ median. The bulk of the assets are held in the Future Generations Fund managed by the Kuwait Investment Authority.”

Yet, in a country research report on Kuwait prepared by the HKTDC, under the headline “Commercial presence in Hong Kong”, is the uninspiring line, “The number of Kuwaiti companies in Hong Kong is not known”.

In a direct nod to reform initiatives, especially related to public debt and residential mortgage laws, Kuwait has had some interesting developments in recent months that might interest Hong Kong.  

In March, Kuwait’s cabinet approved a draft decree that will allow the OPEC member state to sell international debt for the first time in eight years. In April, a Fitch Rating report pointed out, “The public debt law … will support government spending on large and diversified projects while preserving foreign assets, including foreign-currency reserves”.

Also, “Fitch expects wholesale lending to increase by 7-8 percent as the public debt reforms take hold and have a spillover effect across multiple sectors that require financing”.

It is widely speculated that Kuwait will soon allow banks to offer mortgage loans for the first time, and according to news reports, that could unlock a market worth $65 billion.

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Notably, it is reported that Kuwaiti stocks are doing better than their Gulf counterparts this year, with banks spearheading the rally.  

While its neighbors seem to be deeply invested in tech-driven urban living and tourism, Kuwait looks to be keen on a balanced, reform-oriented path to economic diversification — a calibrated move away from oil dependence.  

Perhaps it is now time to overcome language and cultural differences in earnest?  

The author, who was born in Kolkata, India, is an award-winning Hong Kong-based journalist, current affairs commentator and English fiction writer.

The views do not necessarily reflect those of China Daily.