The ongoing conflict in the Middle East will mainly affect import and export trade, but the overall impact on Hong Kong remains limited, said Secretary for Commerce and Economic Development Algernon Yau Ying-wah on Sunday.
Speaking on a television program, Yau said the Hong Kong Economic and Trade Office in Dubai has reported generally calm conditions in the city. While some people may have left, which has a mild negative effect on the local economy, the overall situation remains stable.
Yau noted that the Strait of Hormuz, an important shipping route, is disrupted due to the conflict and could affect trade flows between Hong Kong and the region. Authorities are exploring alternative routes.
He stressed that Hong Kong’s trade is broadly diversified, with its biggest markets in ASEAN and several RCEP economies, so the impact from the Middle East conflict is not expected to be severe.
He noted that Hong Kong’s total trade with the Middle East last year amounted to over HK$160 billion, which is not particularly large. The government will continue to explore markets in Central Asia, Eastern Europe and North Africa in the future.
He said Central Asia’s strong mineral and energy resources could help position Hong Kong as a platform for commodities trading and contribute to the city’s economic transformation over time.
On the planned Economic and Trade Office in Riyadh, Yau said progress has been steady but cautioned some instability and flight cancellations are factors to consider when deciding on an opening date. He stressed the government is not abandoning the plan, as a presence in Saudi Arabia could bring long‑term trade and economic benefits.
He added that the government had so far received no requests for assistance from Hong Kong businesses in the region, and has seen no obvious changes in bilateral investment. On the contrary, Hong Kong might attract more risk‑hedging capital in the financial sector.
As for whether the conflict would prompt a revision to Hong Kong’s 2026 economic growth forecast, Yau said it is too early to tell.
