Why Hong Kong is an ideal destination for Middle East companies

Four sectors will benefit the most from a Hong Kong list. 

Middle East companies, particularly those belonging to the Energy and Renewable Energy, Healthcare and High-tech, Infrastructure, and Finance sectors, will benefit most from a Hong Kong listing, a joint report from Hong Kong Trade Development Council (HKTDC) and CCB International Capital Limited (CCB International) revealed

The report listed the city’s location, rule of law, impressive market breadth and depth, and global investor base as amongst its advantages as a listing destination.

“Hong Kong’s robust legal framework – something that Middle Eastern companies value particularly highly – is a significant advantage and an essential part of its appeal as a listing destination. As the only common law jurisdiction within China, Hong Kong and its legal system has a proven track record of upholding the rule of law and of maintaining judicial transparency,” the report stated.

“This framework has long functioned as a guarantee of the fundamental rights of any global enterprise or investor looking to raise or allocate funds as part of a Hong Kong-based listing initiative,” the report added.

As to how Hong Kong can optimise its role as a premium listing hub for Middle Eastern companies, the research emphasised the importance of strengthening and sustaining its connectivity with many Middle Eastern countries, especially at the government and regulatory levels.

“Building closer G2G relationships with many Middle Eastern economies was seen as of paramount importance, with the countries’ respective governments seen as playing a significant role in steering the relevant business sectors,” the report stated.

The report also recommended that a higher level of market promotion and investment education be undertaken regarding many Middle East prospects as a means of nurturing and directing their interest in Hong Kong’s financial services resources.