InvestHK, the Hong Kong government’s investment promotion agency, on Thursday said that Hong Kong is aiming to attract investments from Middle Eastern countries and help establish them locally.
In a statement to the Emirates News Agency (WAM), which was part of media delegation to the Asia’s leading global hub, Dr Jimmy Chiang, Acting Director-General of Investment Promotion at InvestHK, also highlighted the importance of attracting investments and expertise from the UAE, which holds immense potential for collaborations in qualitative fields to enhance economic development in both places.
The media delegation’s visit aims to highlight Hong Kong’s initiatives and incentives to attract international investments, especially from the Middle East, in preparation for the 8th Belt and Road Summit scheduled on September 13 and 14 this year at the Hong Kong Convention and Exhibition Centre, organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC).
“The UAE is a leading platform for expanding investments and cooperation between the Middle East and Hong Kong, which is a strong link and gateway between international countries, China, and Asia, while both places offer mutual benefits in terms of supporting local, regional, and international economies through trade, investment and knowledge exchange,” Chiang noted.
He also reiterated Hong Kong’s support for Middle Eastern companies seeking to establish their businesses in the region by providing incentives, facilitations, and free services, such as licences and visas, as well as promoting investments and consultations.
Hong Kong also offers strong tax appeal to boost investment, he added, urging investors to take advantage of the city’s low profit tax regime at only 16.5%.
ME Stepping Up Investments
Chiang explained that Middle Eastern companies are increasing their investments in Hong Kong across various sectors, including financial technologies, creative industries, innovation, and the Internet of Things (IoT).
He also revealed Hong Kong’s keenness to attract investments in biotechnology, science, artificial intelligence (AI) and lifestyle-related sectors, such as food, tourism, culture and retail, in addition to encouraging investors to collaborate with research and development centres in Hong Kong and foreign companies to leverage research outcomes, to develop products that attract investments and expand trade.
He said that Hong Kong’s robust economy, which is one of the world’s freest economies, and its position as the fourth leading international financial centre, noting that InvestHK’s role is to attract more investors during the summit from various Belt and Road countries, help them to establish business in Hong Kong, offer free services, respond to their business developments.
“Hong Kong and the Middle East have much to exchange, whether in the sectors of culture, tourism, trade or investments, and their endeavours include attracting investors from these countries to establish their family offices in Hong Kong, where family businesses can benefit from 100 percent tax exemptions for those that meet specific criteria,” he said.
As part of the “Belt and Road Initiative,” Chiang affirmed the importance of conveying important messages during the summit to Middle Eastern companies to leverage Hong Kong’s investment advantages due to its free economy and its rank as the fourth leading international financial centre, therefore, solidifying its contribution to supporting the Belt and Road Initiative.
In turn, InvestHK aims to attract more investors during the summit from various Belt and Road countries to establish themselves in Hong Kong by providing free services and assisting in advancing their businesses.
As part of its efforts to attract investments, the Hong Kong government recently established a $4 billion investment fund aimed at attracting technology companies, especially in sectors such as financial technology and smart manufacturing, to increase the contribution of smart manufacturing to GDP from one percent to five percent over the next ten years.