Hong Kong Economic and Trade Office (HKETO) Director General Damian Lee has said that a potential free trade agreement between the city and the Gulf Cooperation Council (GCC) will further strengthen ties between the two sides.
Damian Lee was speaking ahead of the opening of HKETO’s first overseas office in the Middle East. HKETO’s office in Dubai International Financial Centre (DIFC) is designed to consolidate and strengthen Hong Kong’s economic and trade relations with trading partners across the GCC.
The new HKETO offices are being opened days after Hong Kong chief executive Carrie Lam set out the government’s priorities, which included exploring the possibility of forging free trade agreements (FTAs) and investment deals with countries in the Middle East.
The HKETO’s director general said that last year, the total merchandise trade between Hong Kong and the GCC surged to $13 billion, out of which the UAE accounted for nearly 70 percent ($9.5bn) trade.
Lee called it the right time to open an office in the region to promote trade and other interaction between Hong Kong and the six GCC member countries.
Lee pointed out that there was a 70 percent increase in the number of start-ups in Hong Kong from 2017 to 2021 and there have been 12 unicorns – a privately held start-up company valued at over $1 billion – over this period.
While, in a bid to entice family offices to Hong Kong, Lam has previously declared that tax concessions would be considered.
According to Dubai Chamber of Commerce, Hong Kong has been identified as having the highest untapped potential market for jewellery products originating in the UAE, currently worth $1.1 billion.
Lee highlighted that Hong Kong is a market of about seven million people and being a gateway to mainland China, it also has very strong relations with other Asian countries.