Hong Kong’s Chief Executive John Lee is set to lead a delegation to the Middle East, aiming to explore potential cooperation opportunities in Qatar and Kuwait. This trip, which will take place after May 9, 2025, comes at a time when Hong Kong is looking to enhance its global standing as a financial hub amid ongoing trade tensions with the United States.
Executive Council member and Legislative Councillor Jeffrey Lam, who will accompany Lee, highlighted the rapid development of the Middle East in recent years, particularly in finance, infrastructure, and tourism. He noted, “Especially after the import duty trade war started by the US, a lot of people do not want to rest all their investments or businesses in the US. So, they are looking into Hong Kong, the Middle East, Association of Southeast Asian Nations countries, etc.”
This sentiment is echoed by Charles Shen Chengang, founder and CEO of the Shanghai-based digital marketing firm Meetsocial. He expressed optimism about the Middle East’s market potential, stating, “Amid the trade war, our clients seek to diversify their markets instead of focusing on the US in terms of sales, supply chain and investment, and the Middle East has strong potential because of the high GDP per capita … creating a high demand for all kinds of products ranging from apparel to electronics.”
According to the latest figures, Qatar boasts the highest per capita gross domestic product (GDP) among the six Gulf Cooperation Council (GCC) countries, standing at US$69,500 in 2023, while Kuwait ranks fourth with US$33,300. This economic backdrop presents a compelling case for Hong Kong and mainland Chinese companies to expand their reach into these affluent markets.
Lam emphasized the importance of discussions around new energy sources during the delegation’s trip, particularly solar energy. He remarked, “Imagine 6.5 to 8.5 hours of sunlight, how we can save that energy and use that energy. That needs technology to accomplish it.” This focus on renewable energy aligns with the Middle East's efforts to diversify its energy portfolio beyond oil reliance.
The Hong Kong delegation aims not only to explore cooperation in energy but also to attract more capital from the Middle East. By encouraging companies to establish their regional headquarters in Hong Kong, the delegation hopes to bolster the city’s status as a business hub.
Shen pointed out that the key infrastructure for e-commerce in the Middle East, including digital payment systems and logistics, has seen significant improvements. “The key infrastructure for e-commerce in the Middle East, such as digital payment and logistics, has also improved a lot, with many of our partners involved in the building of those networks to lower the operation cost,” he noted.
This trip underscores a broader trend of Hong Kong seeking to strengthen its economic ties with the Middle East as businesses look for alternatives to the US market. The delegation's focus on understanding the regulatory landscape and cultural differences in the Gulf countries is crucial for navigating these new opportunities.
As the delegation prepares for its journey, the implications of the US trade war loom large. The heightened tariffs and trade barriers have prompted many businesses to reconsider their strategies and look for new markets. The Middle East, with its high GDP per capita and improving infrastructure, presents a promising avenue for diversification.
In conclusion, as Hong Kong's Chief Executive John Lee and his delegation embark on this significant trip to the Middle East, the focus will be on fostering relationships that could lead to mutually beneficial opportunities in finance, energy, and e-commerce. With the region's rapid development and economic potential, Hong Kong is poised to play an essential role in the evolving landscape of international trade.
