Hong Kong Chief Executive John Lee is positioning the Middle East as a central pillar of the China-led Belt and Road Initiative, leveraging the city’s professional services and financial infrastructure to capture growing capital flows from Gulf states amid global economic fragmentation. According to official reports from the Belt and Road Summit, trade between Hong Kong and the Gulf Cooperation Council surged by more than 53 percent between 2020 and 2024, reaching nearly $20 billion.
John Lee Positions Middle East as Pillar for Belt and Road Initiative Growth
Speaking at the 11th edition of the Belt and Road Summit in Hong Kong, Chief Executive John Lee emphasized that the world is struggling with unprecedented change and geopolitical fragmentation. Without directly citing geopolitical conflicts, Mr. Lee stated that connectivity, cooperation, and consensus are essential for maintaining trade growth. Data from the Griffith Asia Institute and the Green Finance and Development Centre shows that overall investments in the initiative have risen to nearly $1.4 trillion across more than 150 member countries.
The Middle East received dedicated focus at the latest summit, featuring a specialized panel and exhibitor zone with representatives from the UAE, Saudi Arabia, Kuwait, Qatar, and Oman. More than a dozen Middle East nations hold membership in the initiative. Under Mr. Lee’s leadership since 2022, high-level delegations have traveled to the UAE, Saudi Arabia, Qatar, and Kuwait to forge closer economic ties. “Our approach to exploring new markets is itinerant,” Mr. Lee said during the event, noting that Hong Kong focuses on specific areas and key economies.
Did you know? Bilateral merchandise trade between Hong Kong and the GCC climbed to nearly US$20 billion in 2024, underpinned by re-export channels for Chinese consumer electronics, industrial materials, and household goods through Hong Kong’s free-port system, according to regional trade data.
Hong Kong Transforms From Western Gateway to Gulf Bridge
According to reports from ThinkChina, Hong Kong has actively transformed its economic identity from a peripheral outpost into a strategic Eurasian connector. While the city’s historical framework relied heavily on Western financial hubs like London and New York, recent economic policy pivots toward the Middle East. A September PwC survey cited in regional reports revealed that nearly 90 percent of Chinese enterprises plan to expand into the Middle East, with many utilizing Hong Kong as their operational base for legal structures and banking platforms.
Pragmatic economic alignment underpins this shift. Despite tightening regulatory control under Beijing’s 2020 national security law, Gulf states have prioritized economic access and portfolio diversification. Key financial agreements highlight this momentum, such as the October 2024 pact between Saudi Arabia’s Public Investment Fund and the Hong Kong Monetary Authority to establish a joint investment fund, alongside Mubadala’s stake in Chinese artificial intelligence firm 4Paradigm.
Record Infrastructure Investments and Summit Deals
Data compiled by the Griffith Asia Institute indicates that engagement levels reached new highs, with total contract and investment volumes hitting $128.4 billion and $85.2 billion respectively. China’s energy-related engagement alone reached nearly $94 billion, more than doubling figures from the previous year. Oil and gas investments surged past $71 billion, while green energy initiatives, including wind, solar, and waste-to-energy projects, secured $18.3 billion with planned capacities exceeding 22 gigawatts.
Frederick Ma, chairman of the Hong Kong Trade Development Council, noted at the summit that diversification is a necessity rather than a choice in a risk-laden global environment. Ahead of the summit’s conclusion, more than $3 billion worth of projects were forged, with expectations to finalize over 60 government agreements and preliminary understandings designed to open new markets and expand regional cooperation.
Frequently Asked Questions
What is the Belt and Road Initiative?
Launched in 2013, the Chinese-led initiative aims to connect Asia with Africa and Europe through land and maritime corridors, improving regional integration and increasing trade. Total investments have approached $1.4 trillion across more than 150 member nations.
How is Hong Kong involved with Middle Eastern economies?
According to Hong Kong officials and regional trade data, Hong Kong serves as a strategic financial and professional services bridge connecting mainland Chinese enterprises with Gulf economies like Saudi Arabia, the UAE, Qatar, Kuwait, and Oman.
What specific agreements have been established between Hong Kong and Gulf states?
Notable agreements include a pact between Saudi Arabia’s Public Investment Fund and the Hong Kong Monetary Authority to establish a joint investment fund, alongside multi-billion-dollar trade projects finalized during annual Belt and Road summits.
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