Chief Executive John Lee and Saudi Arabia’s Minister of Investment Khalid Al-Falih today witnessed Hong Kong and Saudi Arabia sign a memorandum of understanding (MOU) to foster co-operation on investment promotion exchange and support.

It was signed by Director-General of Investment Promotion Alpha Lau and Ministry of Investment of Saudi Arabia Associate Office Director-China Ayidh Alyami.

Mr Lee noted that the signing of the MOU between Hong Kong and Saudi Arabia marks a new milestone between the two places in terms of investment promotion exchanges.

He pointed out that under “one country, two systems”, Hong Kong has the distinctive advantages of enjoying the strong support of the motherland and being closely connected to the world.

While Hong Kong is also an important investment hub in the Asia-Pacific Region, Mr Lee said the city will make good use of its roles as a superconnector and a super value-adder to assist Mainland and overseas enterprises to respectively tap into the Mainland market and go global.

Meanwhile, Saudi Arabia is a leading economy in the Gulf Region and an important source of foreign direct investment in the world.

Mr Lee said he is confident that following the signing of the pact, there will be deeper and further co-operation on investment promotion between the two places.

The MOU aims to enhance co-operation on investment promotion between Hong Kong and Saudi Arabia. It also strengthens the economic relations between the two places in the field of promotion of direct investment by encouraging exchange of visits and expertise, organisation of events such as meetings and conferences as well as exchange of information related to business and investment climate.

Apart from signing the agreement, Hong Kong has also launched formal negotiations with Saudi Arabia on an Investment Promotion & Protection Agreement (IPPA), and both sides are intending to conclude the negotiations as soon as possible.

The IPPA aims to protect, enhance and open investment, and helps strengthen investor confidence and increase bilateral investment flows for boosting closer economic relations between Hong Kong and trade partners.