Shaik Mohammed bin Essa Al Khalifa, Chief Executive of the Bahrain Economic Development Board, recommends Middle Eastern investors use Hong Kong as their platform to Greater China markets

The leading positions of Hong Kong and Bahrain could help to re-balance the oil-dependant trade and investment flows between the Middle East and Asia, according to Shaik Mohammed bin Essa Al Khalifa, Chief Executive of the Bahrain Economic Development Board.

As prime financial and deal making centres in their respective regions, Hong Kong and Bahrain provide access to huge markets for investment, he said. The synergies could benefit both countries in terms of trade opportunities for the future.

Shaik Mohammed was in Hong Kong recently to foster the growing business partnership between Hong Kong and Bahrain.

For Hong Kong-based companies doing business in the Middle East, he says Bahrain offers the best value proposition, with ready access to the market, a cost-competitive business environment, and the strictest regulations to protect a company's investment. Hong Kong, on the other hand, is the Middle East's ideal launchpad for tapping opportunities in Greater China.

Perfect partners

"We believe Bahrain is the right partner for Hong Kong in serving the region, and we think Hong Kong is our partner in serving China and Southeast Asia. We believe we complement each other, and provide access to the region as a whole."

For any relationship to succeed in the long run, you need to create a win-win situation for both sides, he continued. Going forward, the key is to equalise and grow two-way trade.

Oil will be a critical factor in China's continuing fast-paced development, and in this, the Middle East will rely on Hong Kong. "For people in the Arab world, the people of Hong Kong know how to deal with China, and have dealt with the Chinese for a much longer period," Shaik Mohammed said. "It is better for us to come to Hong Kong, meet our friends here, and then, via Hong Kong, access the greater markets."

Yet despite the opportunities that oil wealth provides, Shaik Mohammed's focus is on reducing dependency on oil in the region, and creating more sustainable economic growth. This could be achieved by increasing China-based exports to the Middle East, and attracting Chinese companies to invest in the region. The Bahrain Economic Development Board is encouraging all new development to be private-sector led, he said.

Investors focus on China

In the past, Middle Eastern investors have primarily turned to the US and Europe for investment partners, but they are now looking east. A "substantial amount of money" has been invested in Asia over recent years, with Bahrain establishing property and other investments with Chinese-based companies as it diversifies its range of investments.

Shaik Mohammed sees this trend increasing. For Middle Eastern companies investing in Asia, he said "we definitely encourage" using Hong Kong as the base.

Hong Kong-Bahrain partnership to balance investment flows