Interest groups in Hong Kong are inviting ultra-rich business families in the Gulf States to invest in the city, maintaining its status as a financial hub despite recent cash outflows, Bloomberg reported Tuesday.
Due to extreme restrictions, many people moved to Singapore and other destinations during COVID-19. The Chinese Government's strong response to dissent from Hong Kong also pushed many people away, the publication said. This also meant that considerable wealth left the city.
Members of Royal families in the Gulf have been attending events recently, including the CEO of Saudi Arabia's King Khalid Foundation. Experts believe that oil-rich gulf states can have an influence. Hong Kong, in return, offers them an opportunity to enter business with Mainland China, Bloomberg said, citing experts.
Hong Kong's flagship carrier, Cathay Pacific (HKG:0293), will resume direct flights to Riyadh in late October. Dubai-backed Emirates Airlines has also opened a travel store in Hong Kong, Bloomberg said. With a 136% increase in tourists from different Gulf States to Hong Kong in July, the two sides are moving in the right direction and could be major partners soon.
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