Expanding Reach: Hong Kong Signs Investment Promotion Pact with Saudi Arabia
Hong Kong and Saudi Arabia recently reached another milestone in history by signing an investment promotion pact. The Memorandum of Understanding (MoU) was signed between the two governments to foster cooperative investment promotion exchange and support.
With its unique qualities, Hong Kong is a highly sought-after investment partner. Benefiting from the’ one nation, two systems’ advantage, Hong Kong enjoys strong backing from China and maintains robust ties with the global community. Its strategic position as the primary centre for investments in the Asia-Pacific region further enhances its appeal.
Hong Kong will actively support Mainland and foreign businesses to enter the Mainland market and grow from there, either into regional or global markets, as a super-connector and super value-adder. Conversely, Saudi Arabia is a significant source of foreign investment globally and has a dominant economy in the Gulf.
An Agreement with Promising Potentials
With the signing of this MoU, experts have expressed optimism about the potential for extensive investment promotion cooperation between the two regions. The MoU is to strengthen economic ties by boosting direct investment, fostering knowledge and skill exchange, and facilitating meetings and conferences. Both parties also look forward to exchanging information about the business and investment climate to ensure optimal outcomes.
In addition to the MoU, formal talks between Hong Kong and Saudi Arabia on the Investment Promotion and Protection Agreement (IPPA) have started. It is the mutual goal of both parties to wrap up the negotiations as quickly as possible. IPPA seeks to safeguard, promote, and facilitate investment. It aims to increase investor trust and enhance bilateral investment flows to maintain stronger economic ties between Hong Kong and its trading partners.
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