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Following is the speech by the Chief Executive, Mr C Y Leung, at the national day reception of Saudi Arabia this evening (September 29):
Consul General, ladies and gentlemen,
Good evening. It's a great pleasure to be here tonight, to celebrate with all of you the national day of the Kingdom of Saudi Arabia.
I'm pleased, as well, for this opportunity to meet His Excellency Omar Al Bunayan, the Consul General of Saudi Arabia, once again. The Consul General assumed his position in February, and just a few weeks later we met to discuss Hong Kong-Saudi Arabia relations.
I know there will be good reasons for us to build on our relations, as Hong Kong and Saudi Arabia continue to expand economic ties. Indeed, last year our Financial Secretary led a high-profile business mission to your capital Riyadh.
And for good reason. Saudi Arabia is Hong Kong's third largest export market in the Middle East. Our bilateral trade has grown, on average, 5 per cent a year between 2010 and 2014. Last year, it was worth US$1.5 billion. In the first half of 2015, total trade between is up 15 per cent, year on year.
They're even more encouraging when you consider that last year US$1.1 billion worth of trade between Saudi Arabia and Mainland China was routed through Hong Kong.
And there's much more to look forward to. I see ample opportunities for co-operation between Hong Kong and Saudi Arabia ahead. For example, our infrastructure and real estate services sector is internationally recognised for its experience in high-rise residential and commercial building construction, including engineering consulting, contracting and project management. From the Mainland of China to the Middle East, Hong Kong professionals are offering their quality services and winning the applause from the local communities. Saudi companies can certainly look to Hong Kong for construction and infrastructural management expertise, for example.
And there's more. Hong Kong is the world's China financial centre, and China's international financial capital. We are the "super-connector" between the rest of China and the rest of the world. That means helping Mainland enterprises "go global" with their services, products and their capital, while enabling overseas companies - including those from Saudi Arabia - to find Mainland markets. And the Mainland and overseas companies naturally mix and match in the two-way platform of Hong Kong for profitable opportunities.
Whether looking for investment capital, or for a base to oversee regional operations, I invite more Saudi companies to turn to Hong Kong. Our business-friendly environment has attracted nearly 7,600 overseas and Mainland companies. They set up in Hong Kong for more good reasons than I have time to articulate.
Certainly, our low and uncomplicated tax regime is a big plus for business. So, too, is Hong Kong's independent judiciary and our staunch adherence to the rule of law - to ensuring a level business playing field for all. Our multicultural, multi-talented pool of services professionals - in finance, accounting, law, architecture, engineering management and more - is another Hong Kong advantage.
Information and capital flow freely in Hong Kong. That's why, in January, the Washington-based Heritage Foundation named Hong Kong the world's freest economy - for the 21st year in a row. That's why, earlier this month, Hong Kong topped the Vancouver-based Fraser Institute's annual "Economic Freedom of the World" report.
Those everyday strengths, and our ever-deepening economic integration with Mainland China, help power Hong Kong's global success. Together, they give us the experience, the expertise and the singular connections to serve as the fundraising and financial management hub for China's new "Belt and Road" initiative.
This forward-looking programme was designed to promote people to people economic co-operation from Asia through Africa, the Middle East and into Europe. Indeed, it has the potential to become a driving force of the world's economy long down the road. And I'm sure Saudi Arabia, with its strategic location between East and West, also has much to gain in this "Belt and Road" initiative.
Alongside trade, the initiative is sure to boost financial co-operation, given the number of Islamic countries along the linked corridors of the "Belt and Road" and its 60-plus economies. That means opportunity for Hong Kong and for Saudi Arabia.
Indeed, this past year, Hong Kong issued two sukuk. Both were well received - in Saudi Arabia, throughout the Middle East and around the world. They showcased Hong Kong's capabilities in sukuk issuance. They underlined, as well, the confidence international investors have in Hong Kong. The confidence Hong Kong and Saudi Arabia together share.
On this encouraging note, I look forward to even closer co-operation between Saudi Arabia and Hong Kong. Thank you.
Ends/Tuesday, September 29, 2015
Issued at HKT 19:05
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MP4 format