(From right) HKTDC Executive Director Fred Lam; HKSAR Chief Executive Donald Tsang; Ali M Thunayan Al-Ghanim, Chaimran of the Kuwait Chamber of Commerce & Industry and H.E.Sheikh Dr Salem Jaber Al-Ahmad Al-Sabah, Adviser to the Kuwaiti Prime Minister

Hong Kong is well placed to become a centre for Islamic finance in Asia, said Chief Executive Donald Tsang at a business luncheon organised by the Hong Kong Trade Development Council (HKTDC) and the Kuwait Chamber of Commerce. He invited Kuwaiti banks and financial services companies to extend and diversify their global reach through the city.

Attended by more than 200 Kuwaiti business people, the luncheon held in late January was the first stop in a week-long business services sector trip to the Middle East which also covered Riyadh, the Saudi Arabian capital, along with Abu Dhabi and Dubai in the United Arab Emirates.

Mr Tsang said Hong Kong's sound financial services infrastructure and well-established system make it an attractive location for investments. The first Islamic retail fund launched recently in Hong Kong had attracted about US$45 million worth of orders by December. Noting Hong Kong is already a market of first choice for Middle Eastern companies, Mr Tsang said average annual bilateral trade with Kuwait grew 20.5 per cent from 2002-2006. In 2006, it was worth US$264 million.

Cepa good for business

"One way to further deepen the trading relationship is for Kuwaiti companies to capitalise on Hong Kong's special status within China," said Mr Tsang, adding that the Closer Economic Partnership Agreement (Cepa) is especially good for this purpose. "We welcome investments by sovereign wealth funds, which are becoming more prominent in financial markets and are a positive force for global markets."

Hong Kong Trade Development Council Executive Director Fred Lam added that Time magazine in its January 2008 cover story had called Hong Kong "China's Wall Street at the dawn of the Asian century", noting the city's world-class financial services sector and bustling stock market.

"We believe we can also become the Middle East's Wall Street," said Mr Lam. He added that there is much more to Hong Kong than finance. A delegation of more than 20 of Hong Kong's most senior players including international bankers, top property developers, architects, urban planners and interior designers as well as heads of major legal services and media companies accompanied Mr Tsang and Mr Lam for the Middle East mission to explore areas of cooperation with Middle East investors.