Hong Kong is actively pursuing free trade agreements with the UAE and other Gulf Cooperation Council (GCC) nations in a bid to strengthen economic ties in the region. This effort comes as the city seeks to enhance its role as a global financial hub and gateway between Asia and the Middle East. Trade in goods between Hong Kong and the UAE amounted to approximately USD 12.8 billion in 2021, a notable rise of 35% from the previous year, underscoring the growing significance of their economic relationship.
Chief Executive John Lee has been vocal about the potential benefits of a free trade agreement (FTA), highlighting that such a deal would promote mutual growth by enhancing trade and investment opportunities. Speaking during his visit to Dubai, Lee stressed that Hong Kong, which already has eight FTAs with 20 economies, stands to benefit significantly from formalizing trade relations with the UAE and the broader Gulf region. The UAE, in particular, sees Hong Kong as a key gateway for trade with mainland China.
The UAE’s position as a major global logistics and trade hub aligns with Hong Kong’s aspirations, which aim to leverage the region’s strategic geographical location. A number of memorandums of understanding (MOUs) have already been signed, which indicate that cooperation will extend beyond trade in goods. One such agreement focuses on technology and sustainability, with Hong Kong firms working on projects in Abu Dhabi aimed at reducing the carbon footprint of buildings using innovative materials and artificial intelligence.
Dubai’s Chambers of Commerce is also looking to strengthen ties, establishing a representative office in Hong Kong to encourage a two-way flow of business. This move highlights the shared ambitions of both regions to increase collaboration across various sectors, from finance to technology, and positions Hong Kong as an essential player in the GCC’s plans to diversify their economies.
