Despite Hong Kong’s economy losing speed to its weakest pace in five quarters on weakened exports and spending, the island still project growth. Hong Kong’s economy grew 1.8% in the third quarter 2024 year-on-year, official advance estimates showed. According to the HK government, private consumption expenditure continued to weaken amid changes in residents’ consumption patterns.

The city-state inked a deal with the Saudi government. Saudi Arabia’s Public Investment Fund (PIF) and the Hong Kong Monetary Authority (HKMA) signed a memorandum of understanding (MoU) to work towards jointly anchoring a new investment fund, with a target size of $1 billion. The MoU was signed at Future Investment Imitative (FII) 8th Edition in Riyadh. FII was once known as the “Davos of the Desert”.

Under the MoU, the joint fund would explore investment in manufacturing, renewables, fintech and healthcare, supporting the localization in Saudi Arabia of companies connected to Hong Kong and the Greater Bay area. It would enable the creation of highly skilled local jobs and drive economic growth through fostering regional champions in the target sectors.

The signing of this MoU is a new milestone and underlines the economic ties between two leading institutions – PIF and HKMA. The proposed new fund aligns with PIF’s strategy of economic diversification and sustainability. The new fund would promote foreign direct investments via Hong Kong, providing a platform for companies to internationalize their businesses and have access to attractive investment opportunities in Saudi Arabia.