Saudia Cargo, Saudi Arabia’s national cargo airline, announced on Monday its plans to set up a joint venture with a Hong Kong-based agent to expand its operations into China and the Asia-Pacific region.
This move aligns with the Hong Kong Special Administrative Region government’s initiatives to strengthen ties with the Middle East.
Named Saudia Cargo Global, the new venture aims to serve as a springboard for the global cargo carrier to tap into the Chinese market by leveraging Hong Kong’s position as a cargo hub in the e-commerce era.
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The new firm will provide services that include freighter operations leveraging Hong Kong’s strategic location; e-commerce logistic solutions to capitalize on China’s online trade; and specialized pharmaceutical transport meeting global standards.
Company CEO and Managing Director of Saudia Cargo Loay Mashabi said, “This venture, aligned with Saudi Arabia’s Vision 2030, is crucial for diversifying our economy, boosting nonoil exports, and accelerating the kingdom’s rise as a global logistics hub.”
Its Chinese strategic partner and logistics player, TAM Group, also prioritizes the new venture. TAM Group founder and Chairman Tam Wing-kun expressed his confidence in the ability to build Saudia Cargo Global into a dominant force in the air cargo industry.
The establishment of Saudia Cargo Global exemplifies the tangible outcomes of Hong Kong’s deepening collaboration with Middle Eastern partners, reflecting the SAR government’s success in fostering international ties.
The most recent effort is Hong Kong Chief Executive John Lee Ka-chiu’s leading a business delegation comprising representatives from Hong Kong and the Chinese mainland enterprises to the Middle East in May.
Hong Kong Deputy Financial Secretary Michael Wong Wai-lun said at a news conference on Monday that the government has set up connections with Middle East counterparts during the visit, expanded cooperation with the Gulf Cooperation Council (GCC) countries, and strengthened commercial and cultural exchanges with them.
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As a result, 59 memorandums of understanding were signed while making full use of the advantages of the city’s role as a superconnector.
Wong also said that the SAR government plans to open more offices in the Middle East, including Saudi Arabia.
Acting Secretary for Commerce and Economic Development Bernard Chan Pak-li said that the SAR government will continue promoting the city’s advantages through large-scale international conferences and outreach activities, stimulating cooperation between Hong Kong and Chinese mainland enterprises, and providing a platform for Chinese mainland enterprises to expand overseas.
Contact the writer at thor_wu@chinadailyhk.com
