Hong Kong Exchanges and Clearing Limited (HKEX) is set to open an office in Riyadh, Saudi Arabia, by 2025, in a strategic move to expand its footprint across the Middle East. This new Riyadh base will enhance HKEX’s presence in the region, allowing it to support greater connectivity between Chinese and Gulf markets while providing on-the-ground resources for investors and issuers aiming to leverage Hong Kong’s robust financial ecosystem.
Strengthening China-Gulf Market Relations
Located in Saudi Arabia’s dynamic economic center, HKEX’s Riyadh office aims to foster connections with local investors and companies, offering them direct access to Hong Kong’s diverse array of financial products. This initiative aligns with HKEX’s mission to unlock growth opportunities tied to Asia’s transformative economic trends, strengthening partnerships in one of the world’s most innovative regions.
HKEX Chief Executive Officer Bonnie Y Chan expressed the company’s enthusiasm, saying, “Opening our first Middle East office in Riyadh underscores our commitment to enhancing capital market connectivity between China and the Middle East. Hong Kong and HKEX’s roles in linking capital and investment opportunities between these regions have become increasingly vital as ties deepen. This new office will extend our global presence and facilitate access for Middle East clients to Asia’s leading, diverse, and highly liquid capital markets.”
Building on Existing Middle Eastern Partnerships
HKEX has already made significant strides in fostering partnerships across the Middle East. Its achievements include signing a Memorandum of Understanding (MOU) with the Saudi Tadawul Group, listing the first Saudi-focused Exchange-Traded Fund (ETF) in Asia, and expanding the list of Recognised Stock Exchanges (RSE) to include the Saudi Exchange, Abu Dhabi Securities Exchange, and Dubai Financial Market. These milestones reflect HKEX’s commitment to enhancing market accessibility between the Middle East and China.
The recent listing of two ETFs on the Saudi Exchange that track Hong Kong-listed equities also marks a pivotal moment in the collaboration between Hong Kong and Saudi Arabia’s capital markets. This builds upon last year’s successful introduction of the first Saudi-focused ETF in Hong Kong, further solidifying cross-border financial ties.
Key Milestones in HKEX’s Middle Eastern Engagement
- Strategic Forums: HKEX hosted the inaugural FII Priority Asia and Capital Markets Forum in Hong Kong, designed to connect investors and corporates across Asia and the Middle East.
- Memorandum with Saudi Tadawul Group (2023): HKEX and Saudi Tadawul Group entered an MOU focused on potential cross-listings, exchange products, and ESG collaboration.
- Expanded Recognised Stock Exchanges: The Saudi Exchange, Abu Dhabi Securities Exchange, and Dubai Financial Market were added to HKEX’s RSE list, facilitating secondary listings in Hong Kong for Middle Eastern companies.
- Saudi-Focused ETF Milestone: Asia’s first and the world’s largest Saudi-focused ETF was listed on HKEX in 2023, showcasing a significant step in China-Gulf investment integration.
- London Metal Exchange Development: HKEX’s subsidiary, the London Metal Exchange, has authorised a new warehouse delivery location in Jeddah’s Red Sea port for copper and zinc. This development reinforces Saudi Arabia’s significance in the global metal supply chain.
Capital Market Expansion Plans
HKEX’s new Riyadh office joins its established offices in Beijing, London, New York, Shanghai, and Singapore, marking another step towards comprehensive global coverage. By positioning itself in the Middle East, HKEX aims to support regional investors interested in Hong Kong’s extensive financial products, thereby strengthening cross-border capital flow between the Middle East and Asia. This strategic expansion is expected to provide Saudi Arabian investors and companies with enhanced opportunities to engage with Asia’s leading capital markets, fostering mutual growth.