JEDDAH, 1 March 2006 — Hong Kong, which claims to be a major leader in the service industry, is now looking toward Saudi Arabia for offering its expertise in the development of infrastructure, finance and real estate sectors.
Its delegation of 20 companies specialized in these fields interacted with local businessmen and investors, following a seminar at the Jeddah Hilton yesterday.
Jeddah Chamber of Commerce & Industry Chairman Abdullah Y. Al-Muallimi in his welcome address hoped that Saudi businessmen and investors would examine the scope of bilateral interests during their meetings with the delegates.
Hong Kong Trade Development Council Executive Director Fred Lam said the visiting company representatives were here for the first time. “Our visit is more of an exploratory type to see the opportunities available here and the scope of bilateral investment,” said Lam who heads the mission.
“It’s more than testing the market,” he said speaking about the objective of the mission. “The mission is not about merchandize trade. We’re not here to sign memorandums of understanding or agreements. We’re here to broaden our bilateral economic ties and business relationship,” Lam told Arab News in an interview later. “We’re interested in participating in the Kingdom’s ongoing infrastructure, real estate, finance and service sector development and invite Saudi businessmen and investors to see if our projects are viable for them in Hong Kong and via Hong Kong in the rest of Asia,” Lam said, adding that Hong Kong could be a very good platform for Saudi companies to expand into Asia, especially for those interested in China and its know-how. He emphasized that Hong Kong had a strong service sector, in fact, a leader, and so Saudi companies can benefit from their expertise. “We can help in infrastructural projects, property management, and architecture and engineering services as we have so many professionals,” he said. One of the objectives of the mission, which is also meeting the JCCI and investment agencies today, is to invite businessmen to Hong Kong in a bid to encourage two-way visits. “We at the council are happy to play the role of a matchmaker and bring the two business communities closer,” Lam said, adding that the Kingdom remains the second most important country for Hong Kong after the UAE in the region.
Asked for the extent of Saudi investment in Hong Kong, Lam said: “Hong Kong is an open economy and so we don’t keep a record of overseas investments.” He, however, emphasized that Saudi investors have kept a “low profile” in Hong Kong. “We’re working on further enhancing bilateral ties, especially in business and other sectors with the cooperation of the Saudi consulate in Hong Kong,” he added. Asked how rising oil prices have impacted the Hong Kong economy, Lam said: “The rising trend of oil prices has impacted Hong Kong like it has done to many parts of the world. This is a global issue and so we’ve been suffering like many others in the world, however, our companies are coping with that.” Hong Kong is a very resilient and dynamic economy and can overcome such situations,” he added.
According to Lam, the bilateral trade totaled $735 million in 2005, 10 percent higher than in 2004 when it was valued at $666 million, 26.7 percent more than the previous year. The trade balance remains in favor of the Kingdom. Hong Kong’s imports from the Kingdom account for $435 million and its exports to the Kingdom $300 million.
Among the areas for investment the Hong Kong mission is looking at the banking sector here, which is opening up. “In the past, we focused a lot of our activities in China and Asia, but now we see some positive developments in the Kingdom and elsewhere in the region, so see some good opportunities in infrastructure, telecommunications, aviation and postal sectors.” What is more, he added, Hong Kong companies have been taking part in the Kingdom’s trade fairs and Saudi businessmen have also been visiting such events in the island.
Asked for the changes in Hong Kong since 1997 when it became part of China, Lam said: “We continue to maintain strong connection with China. Any city or province in China will tell you that. Hong Kong is their biggest investor.” He added that China is now one country with two systems, which ensures both the autonomy of Hong Kong’s legal and economic systems and direct access to the mainland market.
He described Hong Kong as Asia’s number one international financial center. “Ours is the world’s freest economy with a free flow of capital, information and goods. Hong Kong’s other advantages include convertible currency linked to the dollar; transparent, secure business environment, strict intellectual property protection and enforcement; and rule of law and familiar international business practices that make doing business easy. “Finally,” he added, “Hong Kong, located at the optimal southern point of the Chinese mainland has an entrepreneurial business culture with highly talented and dynamic people.”