In today’s complex and ever-changing global economic landscape, businesses are intensifying efforts to expand their market networks and identify new growth areas.
In recent years, member states of the Cooperation Council for the Arab States of the Gulf (also known as the Gulf Cooperation Council, or GCC) have proactively diversified their economies, emphasizing the development of new industries. Qatar and Kuwait, among the earliest participants in the Belt and Road Initiative (BRI), present significant collaboration opportunities with the Hong Kong Special Administrative Region and the Chinese mainland.
In 2024, Hong Kong’s bilateral trade with Qatar and Kuwait surpassed HK$14 billion ($1.8 billion), an increase of about 40 percent from 2018. Both Qatar and Kuwait are actively diversifying their economies beyond oil, creating tremendous potential for collaboration across multiple sectors such as infrastructure, finance, green development, and innovation and technology.
In May, I joined a business delegation led by Hong Kong Chief Executive John Lee Ka-chiu to Qatar and Kuwait. Since his inaugural trip to the Middle East in 2023, the chief executive has visited four GCC member states. Our visit to Qatar and Kuwait was met with high-level attention from both countries. During the trip, we engaged in substantive discussions with senior officials, who unanimously endorsed strengthening multifaceted cooperation in areas such as financial collaboration, bilateral trade and investment, and cultural exchanges. The visit resulted in 59 memorandums of understanding and agreements, 35 in Qatar and 24 in Kuwait, spanning diverse sectors that included governmental cooperation, trade, investment, finance, technology, legal services, engineering, education, and sports. This lays a robust foundation for long-term, stable partnerships between the HKSAR and the two countries.
Reflecting on 2023, when I joined the chief executive’s inaugural Middle East visit as a representative of the professional sector, Hong Kong and Middle Eastern enterprises and institutions signed 13 high-quality MOUs or letters of intent. The recent visit marked a significant improvement, extending beyond business-to-business cooperation to include 11 government-related cooperation initiatives, such as investment agreements and visa arrangements, yielding positive outcomes. Notably, Hong Kong and Qatar have substantially concluded negotiations on the Investment Promotion and Protection Agreement, and will begin discussions on mutual recognition arrangements for their respective Authorized Economic Operator programs, creating a more favorable environment for capital and goods flow. These government-to-government achievements will significantly lower trade barriers and enhance people-to-people exchanges between Hong Kong and the Middle East. This not only supports Hong Kong’s small and medium-sized enterprises and professional services in expanding their business networks, but also facilitates the identification of local partners, creating substantial value for businesses entering BRI markets.
The delegation included over 20 representatives from mainland enterprises. Through interactions with them, I noted their strong appreciation for Hong Kong’s strengths as a leading global financial center, with many already utilizing or planning to leverage Hong Kong’s world-class financial services. During this joint visit, they experienced firsthand the value of the Hong Kong brand, particularly in the city’s multilingual talent pool, alignment of professional services with international standards, and effective business matching services. These attributes enhance the brand appeal for mainland enterprises looking to venture overseas. Several enterprises expressed plans to apply for listings in Hong Kong or to expand their operations here. In addition to accessing financial services, they are also considering the city’s offerings in management, trade, and legal services. Some even intend to establish research and development or international headquarters in Hong Kong, using the city as a crucial springboard for global expansion.
Across the Middle East and other BRI markets, the Hong Kong brand enjoys strong recognition and credibility. During our visit to Qatar, we learned about the application of autonomous buses at Hamad International Airport in Doha. A mainland tech company that is establishing its headquarters in Hong Kong participated in this autonomous driving pilot project. By leveraging its successful experience at Hong Kong International Airport, the company expanded its operations to Qatar and beyond, setting a precedent for the application of autonomous driving technology at airports in the Middle East region, thereby underscoring the global recognition of Hong Kong’s standards. As mainland enterprises navigate the complexities of international expansion, Hong Kong’s strengths under the “one country, two systems” principle make it an ideal platform for connecting the mainland with the rest of the world.
Through my engagements with Hong Kong representatives, I gained insights into how this joint visit by Hong Kong and mainland enterprises created a synergistic effect, where “one plus one is greater than two”. Hong Kong and mainland companies naturally complement each other’s strengths. In the complex and dynamic international landscape, when mainland enterprises encounter challenges in global expansion and local implementation, the international expertise and brand value of Hong Kong businesses offer assurance and help mitigate risks. For instance, one of the key achievements of this visit was a tripartite agreement signed among Hong Kong, the mainland and Qatar to strengthen cooperation in fintech, covering Web3 and artificial intelligence. This collaboration leverages the technological strengths of each region for mutual development and benefits.
Thus, Hong Kong is not only a superconnector but also a super value-adder. The collaboration between Hong Kong, the mainland and the Middle East has opened up new growth opportunities amid an uncertain global market, representing a vital chance to promote economic diversification and foster the sound development of economic globalization. Looking ahead, the Hong Kong Special Administrative Region government will continue to organize outbound missions to explore more trade and investment destinations along the Belt and Road. We are committed to advancing meaningful progress in high-quality BRI cooperation, deepening international exchanges, and seeking diverse pathways amid the challenges of a shifting global economy.
The author is the commissioner for Belt and Road of the Hong Kong Special Administrative Region government.
The views do not necessarily reflect those of China Daily.
