Lee draws Saudis closer with major mission

Hong Kong and Saudi Arabia have agreed to negotiate an agreement to step up economic and investment ties, Chief Executive John Lee Ka-chiu said after meeting with the Saudi investment minister on the first day of a mission to the Middle East.

Lee led a delegation of his principal officials and more than 30 industry leaders from business, professional services, financial services and IT, arriving in the oil-rich nation's capital, Riyadh, around 3 am yesterday.

Lee, wearing a broad smile, was welcomed by the Saudi deputy investment minister, Badr AlBadr, and Riyadh's consul general in Hong Kong, Hamad Aljebreen, at the airport.

After a short break at a hotel Lee met with Minister of Investment Khalid Al-Falih.

In a Facebook post later, Lee said: "With the common consensus that the two economies will seek to strengthen bilateral trades and investment, I am pleased to announce we will launch negotiations on an investment promotion and protection agreement.

"The negotiations will send a positive signal to the business communities of the two places and help strengthen investor confidence and expand bilateral investment flows."

According to the Trade and Industry Department, the agreement will lift mutual investments between the SAR and overseas economies by ensuring protection for overseas investors in Hong Kong and also for locals investing in foreign countries.

So far, Hong Kong has signed 22 such agreements, including with the Association of Southeast Asian Nations, Australia, Canada, France, Japan, Thailand, United Arab Emirates and the United Kingdom.

Lee had said upon landing he is confident of reaching a number of agreements with Riyadh, including persuading state-owned, oil-producing giant Saudi Aramco, to list in Hong Kong.

Aramco, with an estimated market value of HK$16.5 trillion in October, is one of the world's most valuable companies.

Lee noted too that the firm has diversified businesses as subsidiaries.

"I will introduce to them Hong Kong's advantages and encourage them to come to Hong Kong, including for listing," he said.

Lee hoped his visit would deepen ties between the SAR and Saudi for communications, collaborations and promotions.

"Before we arrived here all parties had been working very diligently," he remarked.

He also said the visit will strengthen Hong Kong's footing in China's Belt and Road Initiative, noting that Middle East is a key part in the program.

"Enjoying the strong support of the motherland and being actively connected to the world, Hong Kong is well placed to contribute to Saudi Arabia's Vision 2030 and also to [the neighboring United Arab Emirates'] We The UAE 2031 and benefit from strengthened bilateral trades, investments and cultural connections."

He also said Hong Kong start-ups in financial services, business and professional services and IT will find abundant opportunities in the Middle East.

Lee goes to Abu Dhabi, the Emirates' capital tonight before Dubai on Wednesday. He will return on Saturday morning.