Hong Kong is actively pushing free trade agreements with the UAE and other Gulf Cooperation Council (GCC) nations in order to strengthen economic ties in the region.
This effort comes as the city seeks to enhance its role as a global financial hub and gateway between Asia and the Middle East.
Trade between Hong Kong and the UAE amounted to approximately USD 12.8 billion in 2021, a sharp rise of 35% from the previous year, underscoring the growing significance of their economic relationship.
Chief Executive John Lee has been vocal about the potential benefits of a free trade agreement (FTA), highlighting that such a deal would promote mutual growth by enhancing trade and investment opportunities.
During his visit to Dubai, Lee emphasized that Hong Kong, with its eight existing free trade agreements, could greatly benefit from establishing formal trade ties with the UAE and the wider Gulf region. The UAE, in particular, views Hong Kong as a crucial gateway for trade with mainland China.
The UAE’s position as a major global logistics and trade hub aligns with Hong Kong’s aspirations, which aim to leverage the region’s strategic geographical location.
The two countries singed a number of MOU’s which indicates that cooperation will extend beyond trade in goods.
One such agreement focuses on technology and sustainability, with Hong Kong firms working on projects in Abu Dhabi aimed at reducing the carbon footprint of buildings using innovative materials and artificial intelligence.
