Saudi Companies Asked to Use Hong Kong as Business Base

RIYADH, 12 June 2006 — With just one Hong Kong dollar as the minimum capital investment and one director and a shareholder needed for getting license to do business in Hong Kong, it has already attracted 3,800 foreign companies which are using Hong Kong as a base for doing business in China.

“We believe Saudi companies are underrepresented in our region. That’s why we are here to invite them to use Hong Kong as a base for their business ventures on the mainland,” Simon Galpin, associate director-general, Invest Hong Kong, the investment promotion arm of China’s special region, said at a press conference. The press conference, held at the headquarters of the Saudi Arabian General Investment Authority (SAGIA), was also attended by Philip Kung, head of Business and Professional Services, and Rajiv Shah, senior consultant, Invest Hong Kong, Dubai branch.

They have entered into an alliance with SAGIA for promoting business opportunities between the Kingdom and China. Invest Hong Kong advises the business community on the opportunities available to investors. Through its data base it also plays the role of a match-maker. The office provided advisory services to 250 companies last year as against 232 the year before.

Galpin said that following the landmark visit of Custodian of the Two Holy Mosques King Abdullah to Hong Kong and China early this year, there has been a great deal of momentum in bilateral trade and investment between the two countries. He said they seized the opportunity for this maiden visit to the Kingdom to explain what Hong Kong has to offer in terms of business opportunities, whether in China or further afield in the Philippines and Vietnam, all within easy reach from Hong Kong.

Referring to his talks at the Riyadh Chamber of Commerce and Industry, Galpin said the level of interest in using Hong Kong as a gateway to China remained high. “Saudi businessmen are pretty well-informed about Chinese economy. Their inquiries revealed their business interests in the manufacturing sector (mainly petrochemicals), real estate and banking sectors.”