Saudi Arabia’s Public Investment Fund (PIF) has signed a landmark deal with the Hong Kong Monetary Authority (HKMA) to explore the joint establishment of a new investment fund with a target size of USD 1 billion. The agreement, signed during the eighth edition of the Future Investment Initiative (FII) conference in Riyadh, signals a deepening of economic ties between the Kingdom and the key Asian financial hub.
Fostering Non-Oil Growth
The new fund is strategically designed to accelerate the development of Saudi Arabia’s non-oil economic sectors, a core objective of the nation’s Vision 2030. The partnership will target high-growth industries within the Kingdom, including manufacturing, renewables, financial technology, and healthcare.
A key objective of the initiative is to support the localization of companies in Saudi Arabia that are connected to Hong Kong and the broader Greater Bay Area, facilitating knowledge transfer and industrial development.
A Bridge Between Hong Kong and Riyadh
This collaboration is set to create a powerful two-way investment corridor. The fund aims to foster foreign direct investments into Saudi Arabia via Hong Kong, leveraging the city’s status as a global financial center to attract capital and expertise to the Kingdom’s burgeoning markets.
Simultaneously, it will provide a platform for Saudi-based companies to internationalize their businesses and access unique investment opportunities through Hong Kong’s extensive network.
Expanding Bilateral Cooperation
The partnership extends beyond the financial sector into broader industrial and commercial fields. Reinforcing this trend, Hong Kong’s Financial Secretary Paul Chan disclosed that a major Saudi development company will hold a roadshow in Hong Kong next month. The event is aimed at forging partnerships with professional service providers to support its large-scale infrastructure construction projects.
This move follows the recent listing of the first Middle Eastern company on the Hong Kong stock exchange, highlighting the increasing integration between the two economies.
About The Public Investment Fund (PIF)
The Public Investment Fund is one of the largest and most impactful sovereign wealth funds in the world, driving the economic transformation of Saudi Arabia. As an engine of Vision 2030, PIF is building a world-class, diversified portfolio through investments in attractive, long-term opportunities at both the domestic and international levels.
Source: Waya
