Hong Kong Chief Executive John Lee Ka-chiu recently led a business delegation comprising representatives of Hong Kong and Chinese mainland enterprises to the Middle East, and I was honored to follow along as the chairman of the Hong Kong Productivity Council (HKPC). I have witnessed numerous memorandums of understanding that Hong Kong and the mainland have established with the Middle East, demonstrating ever more cooperation potential between the Middle East and Hong Kong.
The business delegation visited Qatar and Kuwait during the trip. Qatar is one of the most developed countries in the Middle East, with a GDP per capita of approximately $70,000 last year, which is the highest among all Gulf Cooperation Council countries. Qatar has abundant natural resources, along with being an important hub for commerce, finance and innovative technology within the Persian Gulf region, making Qatar the “bridgehead” to further connect and expand business operations to North African markets.
We visited numerous institutions such as the Qatar Investment Authority, the Qatar Financial Centre, and the Qatar Development Bank (QDB), mutually exploring potential opportunities for cooperation along with making friends among respective fields. In particular, the QDB left a deep impression in my mind.
The QDB is a financial institution established by Qatar’s government, mainly responsible for providing firms with financing, supporting small and medium-sized enterprises’ development, and overall diversifying Qatar’s economic development. Other than that, the QDB also supports Qatari enterprises’ efforts to expand their respective overseas markets and facilitate export trade.
The QDB acts as a single institution to provide comprehensive and effective services.
The setup in Hong Kong, on the other hand, separates responsibilities by utilizing various government departments and statutory bodies, such as the Hong Kong Trade Development Council, Trade and Industry Department, Invest Hong Kong, the HKPC, and others. Having multiple organizations allows better flexibility and efficiency.
Still, referencing from QDB, the Hong Kong Special Administrative Region government could better coordinate and lead government departments and statutory bodies to more flexibly and cohesively service local and international companies according to their needs, further promoting Hong Kong’s economic development.
Second, Hong Kong could better utilize its advantages as its identity as a highly international region and “two-way springboard” for overseas development. During the QDB meeting, I interacted with many Middle East political and business leaders, who expressed a keen interest in expanding their businesses in Hong Kong. Furthermore, they also plan to use Hong Kong as a “bridgehead” to establish businesses on the mainland and in Southeast Asian countries.
The HKSAR government could take an even more proactive approach by attracting more Middle East enterprises that specialize in both traditionally competitive and emerging industries. Under “one country, two systems”, Hong Kong has the distinctive advantage of enjoying strong support from the mainland and being closely connected to the world. Hong Kong is a global leader and international connector in supply chain management, research and development, technology transfers, and legal and financial services, especially when it comes to industry related producer services. When the Middle East and North African enterprises are expanding their overseas markets, our services can definitely meet their needs. Therefore, the relevant authorities should act on the results we have achieved during the Middle East trip by enhancing industrial coordination with local authorities, identifying Middle East enterprises that want to develop overseas and provide appropriate assistance such as service support, tax incentives, and convenient measures to access the Guangdong-Hong Kong-Macao Greater Bay Area, further attracting them to invest in Hong Kong.
Third, Hong Kong has an edge and strength in assisting mainland enterprises and brands to develop in the Middle East market. We should utilize this advantage and act as a super value-adder, adding value to China’s industries and creating more economic development opportunities for Hong Kong.
The HKPC has constantly assisted mainland enterprises to develop overseas, including establishing “The Cradle” with the Zhongguancun Innovation Center, the National Innovation Center par Excellence, and the Greater Bay Area National Centre of Technology Innovation in mid-April.
The chief executive also visited Hamad International Airport in Qatar, learning about the operations and effectiveness of the autonomous vehicle trial project in the airport. Chinese enterprise UISEE participated in the trial project, in which the HKPC previously acted as technical consultant by providing technical support and overseas development services. UISEE cooperated with Hong Kong International Airport by applying UISEE’s technology. After acquiring experience, the technology successfully launched internationally, including Qatar as a trial region. This is a prime example of Hong Kong working with mainland enterprises to tap new markets and internationalize Chinese products.
The HKPC will continue to support interconnection between mainland enterprises and global innovative technological resources through The Cradle. Hong Kong could continue to attract foreign businesses to localize in Hong Kong, as well as accelerate internationalization and commercialization of local technologies, where the Middle East market is one of the destinations with great potential.
Lastly, as the global economic situation remains uncertain, firms are always eager to tap new markets and explore new business opportunities. The HKSAR government should continue to improve measures to better help local enterprises to explore Middle East business opportunities. The Middle East countries have a younger demographic, with stable growth in e-commerce and demand for value-for-money goods. Many local enterprises are aware of the attractiveness of the Middle East markets, hoping to enter the market with mainland or Hong Kong brands to build their brand reputation.
To take the textiles and clothing industry as an example, some operators have recently noted that the Middle East countries have high purchasing power, and they hope the HKSAR government could support these kind of local industries to enter the Middle East market. I hope that the HKSAR government continues to enhance measures to support the export trade in Hong Kong and help local enterprises expedite expansion into new markets.
To conclude, the Middle East market holds great development potential. I hope that I can continue to cooperate with the HKSAR government, and the industrial and commercial sectors, to further build on the various achievements from the Middle East trip, retain our role as a super value-adder, help China deepen international cooperation, create greater business opportunities for all parties in the HKSAR, and contribute to the development of the Belt and Road Initiative.
The author is a member of the Legislative Council and chairman of the Hong Kong Productivity Council.
The views do not necessarily reflect those of China Daily.
