Hong Kong and Saudi Arabia Announce $1 Billion Investment Fund to Forge Closer Ties
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Hong Kong’s central banking institution and Saudi Arabia’s sovereign wealth fund signed a memorandum of understanding on Thursday to establish a $1 billion investment fund.
The Hong Kong Monetary Authority and Saudi Arabia’s Public Investment Fund (PIF) agreed the move to support Hong Kong-linked companies expanding into the Middle East country.
The fund will explore investment opportunities in manufacturing, renewable energy, fintech and health care, and support companies connected to Hong Kong and the Greater Bay Area that want to move into Saudi Arabia. It should create highly skilled local jobs and drive economic growth, the HKMA said in a statement.
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- Hong Kong Monetary Authority and Saudi Arabia's Public Investment Fund signed a $1 billion investment fund agreement to support Hong Kong-linked companies expanding in Saudi Arabia in sectors like manufacturing, renewable energy, and fintech.
- Hong Kong's deepening relationship with Saudi Arabia includes financial collaborations, recent ETF listings, and plans for a Hong Kong Stock Exchange office in Riyadh by 2025.
- Challenges for Chinese companies in Saudi Arabia include navigating technology-sharing and cultural integration, highlighting the need for mutual understanding in cross-cultural business.
- Alibaba Group Holding Ltd.
- Alibaba Group Holding Ltd.'s cloud services unit has entered the Saudi market. However, like some other Chinese companies, it has faced challenges with local requirements, including technology-sharing and aligning with Saudi business culture. These issues have reportedly led some firms to restrict their expansion plans in the region.
- SenseTime Group Inc.
- SenseTime Group Inc., an AI developer, has entered the Saudi market but faced challenges such as navigating technology-sharing requirements and aligning with Saudi business culture. These challenges have led some firms, including SenseTime, to restrict their expansion plans, highlighting the need for mutual understanding in cross-cultural business ventures.
- November 2023：
- Hong Kong listed the world's largest Saudi exchange-traded funds (ETFs), with initial assets exceeding $1 billion.
- This week, 2024：
- The Saudi Exchange, or Tadawul, began listing two ETFs from Hong Kong for the first time.
- Thursday, 2024：
- Hong Kong's central banking institution and Saudi Arabia's sovereign wealth fund signed a memorandum of understanding to establish a $1 billion investment fund.
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