‘Take a long-term view’: Hong Kong minister says Middle East investment unaffected

Hong Kong's Commerce Minister, Algernon Yau, has publicly reassured investors and businesses that the city's strategic investments in the Middle East will proceed undeterred by ongoing regional conflicts. Speaking on a radio program, Yau emphasized that while geopolitical situations cause temporary disruptions, the long-term economic prospects for the Middle East remain strong. He specifically pointed to Hong Kong's competitive advantages in sectors like innovation, technology, and green finance, which align with the development needs of Middle Eastern nations. The government is committed to continuing its efforts to attract capital from the region into Hong Kong's financial markets.

Yau provided context by noting that trade between Hong Kong and the Middle East constitutes 1.5% of the city's total trade volume, and the impact of recent conflicts on external trade performance has been limited. This statement comes against a backdrop of US and Israeli strikes on Iran, which initially disrupted global air transport and drove up oil prices. However, following peace talks and a ceasefire, benchmark oil prices have retreated by about 9%, returning to levels seen at the conflict's outset. The minister's core message is a call for discernment and patience, urging Hong Kong entrepreneurs to look beyond short-term volatility and assess the enduring opportunities for partnership and growth.