Saudi central bank governor Al-Sayari and his delegation were in Hong Kong this week to attend the Financial Stability Board’s Plenary meeting
Hong Kong and Saudi Arabia are strengthening their bilateral cooperation in the financial services sector after a meeting in the city this week as their central banks explore ways to enhance their roles as the gateways between the two jurisdictions.
Eddie Yue Wai-man, CEO of the Hong Kong Monetary Authority (HKMA), met with Ayman Al-Sayari, governor of the Saudi Central Bank known as SAMA, on Thursday, in a follow-up to their first meeting in Riyadh in July 2023. They discussed financial infrastructure development, supervisory technology adoption and investment outlook, among other topics, the HKMA said on Friday.
The two monetary authorities also explored potential areas of cooperation in financial stability, data analyses, financial innovation and payment systems, the SAMA said in a separate statement.
“Connectivity between Hong Kong and Saudi Arabia has been growing in recent years,” Yue said. “We look forward to strengthening our partnership with the SAMA and continuing our exchange in areas of mutual interest to enhance [our] roles as the gateways between the Middle East and Asia.”
Al-Sayari and his delegation were in Hong Kong for the Financial Stability Board Plenary meeting on December 4 and 5, as were some global central bankers and finance ministry officials. The Basel-based board monitors systemic risk and makes recommendations to fix vulnerabilities in the global financial system.
The bilateral meeting reinforced the continuous cooperation between the HKMA and the SAMA, highlighting their commitment to collaborate and share knowledge to drive innovation. The SAMA is looking forward to deepening its ties with the HKMA through ongoing exchanges of views, experiences and policy insights, Al-Sayari said.
Both parties agreed in July last year to jointly promote financial innovation projects and develop fintech to help grow their economies while reducing their reliance on traditional pillars like the oil and property sectors.
Under the Vision 2030 plan, Saudi Arabia is reducing its reliance on oil income by launching many infrastructure projects. This will create a lot of new opportunities for Hong Kong-based start-ups, according to analysts.
Financial Secretary Paul Chan Mo-po led a delegation to the Future Investment Initiative (FII) summit in Riyadh in late October. Public Investment Fund, Saudi’s sovereign wealth fund, and the HKMA agreed on a US$1 billion fund to help Hong Kong-based firms in growing their market presence in the Middle East.
Two exchange-traded funds (ETFs), valued at a combined US$1.8 billion, were listed on the Tadawul exchange during the FII summit, allowing Middle Eastern investors to trade Hong Kong stocks for the first time. This completed a two-way flow of capital, after an ETF tracking Saudi’s top stocks was listed in Hong Kong in November last year.