Opinion | In betting on Saudi Arabia, Hong Kong is really betting on itself

Hong Kong’s financial identity is entering a new chapter, shaped as much by strategic alignment as capital flows. By co-launching a US$1 billion investment fund with Saudi Arabia’s Public Investment Fund (PIF), the city is taking one of its most assertive steps yet to redefine Hong Kong’s financial identity in a rapidly changing global economy.

This comes as Hong Kong companies are rethinking their traditional expansion paths. According to a new HSBC survey, nearly one in five Hong Kong firms now prefers Saudi Arabia as a diversification destination, outpacing the preference for mainland China. It underscores the new reality confronting Hong Kong’s business community: in an era of geopolitical tensions, supply-chain disruption and intensifying competition, relying on a single market is no longer seen as safe or strategic.

Saudi Arabia’s rise in Hong Kong corporate planning is not accidental. Vision 2030 has transformed the oil-dependent Gulf kingdom into an economy betting big on technology, tourism, manufacturing and green energy. Massive state backing, streamlined regulatory reforms and a clear appetite for foreign partnerships are pulling in companies that once defaulted to Southeast Asia or mainland China.

For Hong Kong, the Gulf is becoming a natural extension of its long-held role as a connector, now shaped by new strategic dimensions. The proposed fund by PIF and the Hong Kong Monetary Authority (HKMA) therefore positions Hong Kong as a co-architect of Saudi Arabia’s diversification strategy and, crucially, gives Hong Kong companies a front-row seat in one of the world’s fastest-growing economies.