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Saudi Arabia, Hong Kong to Establish Fund to Track Stock Indices

CEO of the Saudi Tadawul Group, Khalid Al-Hussan (Asharq Al-Awsat)
CEO of the Saudi Tadawul Group, Khalid Al-Hussan (Asharq Al-Awsat)
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Saudi Arabia, Hong Kong to Establish Fund to Track Stock Indices

CEO of the Saudi Tadawul Group, Khalid Al-Hussan (Asharq Al-Awsat)
CEO of the Saudi Tadawul Group, Khalid Al-Hussan (Asharq Al-Awsat)

The first global edition of the Capital Markets Forum, organized by the Saudi Tadawul Group and the Hong Kong Exchanges and Clearing Limited (HKEX), kicked off in Hong Kong on Thursday, in the presence of over 650 people from around the world, including financial leaders, investors and representatives of regulators and enterprises.
The forum highlights the Hong Kong stock exchange operator’s latest strategy to attract new investors, with the aim to replace stockholders from the United States and Europe who may be deterred from doing business in China at a time of rising geopolitical tensions. Last month, the country's securities regulator said that it would encourage more companies to hold IPOs in the city.
The forum discusses important investment prospects through global partnerships and the means to exploit investment opportunities in the Kingdom and China, as well as studying future investment portfolios.
At the opening of the forum, the CEO of the Saudi Tadawul Group, Khalid Al-Hussan, said that the decision to host the Capital Markets Forum in Hong Kong demonstrates the growing relationship between Saudi Arabia and Asia, adding that the event would constitute a major bridge for investors from the two countries and pave the way for a more integrated system of global capital markets.
“The convergence between Hong Kong’s technological development and the Kingdom’s ambitious economic diversification enables a new era of knowledge exchange and cooperation that extends beyond the capital markets,” he stated.
Al-Hussan explained that during the forum, more than a thousand investors from listed companies and financial industry leaders will gather to explore challenges and prospects in the field of sustainability, innovation, and global investment trends.
For her part, Hong Kong Exchanges & Clearing Ltd. CEO Bonnie Chan said that she expects large initial public offerings (IPOs) to return to the city with the improvement of basic conditions and the support of Chinese regulators.
In her speech during the opening ceremony, she said that the Hong Kong Stock Exchange received more than 100 new listing applications this year, with activity rebounding, especially after the support measures taken by China.
Hong Kong has returned to the radar of global investments, after the China Securities Regulatory Commission (CSRC) announced last month that it would facilitate IPOs in Hong Kong by leading Chinese companies. The regulatory body also announced the expansion of the cross-border investment scheme to strengthen the city’s position as an international financial center.
The new measures began to attract money flows into the market, and trading value rose, Chan underlined, which she said created a more favorable environment for companies to launch their IPOs.
The Hong Kong Stock Exchange has had a difficult time in recent years. The faltering Chinese economy and increasing disputes between Beijing and Washington have exhausted investor interest in China-linked stocks.
Meanwhile, Hong Kong Deputy Financial Secretary Michael Wong said in a statement on Thursday that Hong Kong and Saudi Arabia are exploring the creation of an exchange-traded fund (ETF) tracking Hong Kong indices.
He added that the Hong Kong government is currently working with several financial institutions to develop the ETF.
Wong also reaffirmed Hong Kong’s commitment to its partnership with Saudi Arabia, noting that Cathay Pacific Airways is expected to re-launch direct passenger flights between Hong Kong and Riyadh.

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Saudi Ministers Highlight Resilience, Adaptability of the Kingdom’s Economy at Budget Forum

Finance Minister Mohamed Al-Jadaan speaks in the first dialogue session of the 2025 Budget Forum. (Asharq Al-Awsat)
Finance Minister Mohamed Al-Jadaan speaks in the first dialogue session of the 2025 Budget Forum. (Asharq Al-Awsat)
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Saudi Ministers Highlight Resilience, Adaptability of the Kingdom’s Economy at Budget Forum

Finance Minister Mohamed Al-Jadaan speaks in the first dialogue session of the 2025 Budget Forum. (Asharq Al-Awsat)
Finance Minister Mohamed Al-Jadaan speaks in the first dialogue session of the 2025 Budget Forum. (Asharq Al-Awsat)

Saudi ministers reaffirmed the continued success of Vision 2030 and the economy’s ability to overcome challenges while achieving diversification.

Speaking at the 2025 Budget Forum, organized by the Ministry of Finance, they underscored the importance of fiscal policies in driving sustainable economic growth and emphasized the integration of various sectors to enhance Saudi Arabia’s global standing.

The forum followed the Cabinet’s approval of the 2025 budget, which projects revenues of SAR 1.184 trillion ($315.7 billion), expenditures of SAR 1.285 trillion ($342.6 billion), and a deficit of SAR 101 billion ($26.9 billion).

Sustainable Spending and Economic Diversification

Finance Minister Mohammed Al-Jadaan highlighted that sustainable spending has enabled Saudi Arabia to provide high-quality services. He emphasized that fiscal policies focus on sectors with a direct impact on economic development and diversification.

Al-Jadaan noted that ensuring fiscal sustainability is crucial to reducing reliance on oil revenues.

“Structural reforms under Vision 2030 have transformed the economy,” he said, adding that non-oil revenues have reached SAR 472 billion due to the significant progress in diversification efforts.

He further explained: “Previously, Saudi Arabia’s growth depended heavily on oil revenues. Today, through diversified economic resources and sustainable fiscal policies, our economy is more resilient.”

He also stressed the role of government borrowing in balancing revenues and expenditures, benefiting both public and private sectors.

Progress Toward Economic Diversification

Minister of Economy and Planning Faisal Al-Ibrahim highlighted that one of Vision 2030’s key objectives is to unlock the potential of citizens while reducing reliance on oil. He noted that in its eighth year, the vision continues to advance steadily and with strong momentum, addressing previous challenges such as dependence on government spending and oil revenues.

“Non-oil activities have grown by 6% over the last three years,” Al-Ibrahim said, “now contributing 52% of real GDP.” He added that non-oil sector growth is projected to reach 3.9% by year-end and 4.8% in 2024.

Al-Ibrahim stressed the importance of sustainable, high-quality growth driven by private sector dynamism and productivity. He also highlighted Saudi Arabia’s increasing global competitiveness in sectors like healthcare, citing breakthroughs such as robotic heart surgeries.

Additionally, he noted the Kingdom’s demographic advantage, stating: “We have a young population, and now is the time to invest in their capabilities, as envisioned under Vision 2030.”

Employment and Reducing Unemployment

Minister of Human Resources and Social Development Ahmed Al-Rajhi announced a new unemployment target of 5% for Saudis by 2030. This follows the Kingdom’s early achievement of its previous unemployment target of 7%, reached seven years ahead of schedule.

Industrial Growth and Export Expansion

For his part, Minister of Industry and Mineral Resources Bandar Al-Khorayef reported significant progress in the industrial sector, with 1,100 new industrial licenses expected in 2024 and 900 factories entering production.

Non-oil exports grew by 15% in 2024, rising from SAR 458 billion ($121.9 billion) to SAR 528 billion ($140.5 billion). Al-Khorayef highlighted that the Saudi Industrial Development Fund financed projects worth SAR 12 billion ($3.2 billion) this year, contributing to total investments exceeding SAR 60 billion ($16 billion).

“The industrial sector is now a central part of government agendas,” he said, adding that export growth was driven by new product development.

Digital Transformation and a Cashless Economy

Minister of Communications and Information Technology Abdullah Al-Swaha outlined Saudi Arabia’s strategy to become a technology exporter, which is a key part of its digital economy goals. He highlighted that over 70% of transactions in the Kingdom are now cashless, supported by the emergence of more than 200 fintech companies.

Al-Swaha emphasized that the next phase will focus on exporting technology and establishing Saudi Arabia as a global leader in the tech sector.

Transportation Growth

Minister of Transport and Logistics Services Saleh Al-Jasser reported that the sector created 122,000 jobs in Q3 2024, with women comprising 29% of the workforce.

He also noted that the transport sector aims to achieve 60% local content in its spending by 2030. The current figure stands at 50%, up from 39% in the baseline year.

Education, Tourism, and Sports

Minister of Education Yousef Al-Benyan highlighted the establishment of the National Center for Curriculum Development as a major achievement in 2023. He also noted that education spending in the 2025 budget exceeds SAR 200 billion.

Minister of Tourism Ahmed Al-Khatib reported that the tourism sector now contributes 5% to GDP, up from previous years, with a goal of reaching 10% by 2030. He added that Saudi Arabia surpassed its Vision 2030 target of 100 million visitors, reaching 109 million tourists in 2023.

In the sports sector, Prince Abdulaziz bin Turki Al-Faisal, Minister of Sports, revealed that 25 local and international companies have shown interest in investing in privatized sports clubs, with projected revenues of SAR 500 million ($133 million).