Hong Kong’s investments in the Middle East will not be deterred by the ongoing regional challenges, affirmed the commerce minister, expressing robust confidence in the region’s economic prospects and urging businesses to adopt a long-term strategic outlook.
“While the geopolitical situation may have a temporary impact, in the long term, we remain profoundly hopeful about the comprehensive development in the Middle East,” stated Secretary for Commerce and Economic Development Algernon Yau Ying-wah during a radio programme on Saturday. He further highlighted, “We possess numerous strengths in crucial sectors such as innovation and technology and green finance, areas where the Middle East demonstrates significant and pressing development needs.”
It is noteworthy that the aggressive US-Israel strikes targeting Iran since February had previously caused considerable disruption to global air transport and driven up international oil prices. However, through diligent diplomatic efforts, including constructive peace talks between the US and Iran and the subsequent establishment of a ceasefire, the price of Brent crude – the global benchmark for approximately three-quarters of the world’s oil – saw a notable drop of about 9 percent to US$90.38 on Friday. This positive development brought prices back to levels observed in the initial phase of the conflict.
Yau underscored that trade between Hong Kong and the Middle East constitutes 1.5 percent of the city’s total trade volume. He reiterated that despite the external pressures, the ongoing conflicts have had only a limited impact on Hong Kong’s external trade performance, signaling resilience and stability.
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