Strengthening Asia-Middle East Investment Ties

Five years ago, the relationship between Hong Kong and the Gulf received little attention in discussions of global capital flows. That has changed decisively. In the post‑Covid landscape, Hong Kong has sought new pools of capital as parts of the international financial community pulled back. At the same time, Gulf investors have begun reassessing their historic reliance on Western financial centres such as New York and London, driven increasingly by geopolitical considerations rather than growth alone.

Hong Kong’s merchandise trade with the Gulf Cooperation Council (GCC) reached US$21.6 billion in 2023, but today the more significant developments are occurring in capital rather than goods. Private wealth and asset management flows are moving into Dubai and Abu Dhabi — reflecting a well‑documented surge of Asian family offices, including Chinese UHNWIs, relocating to the Gulf in response to regulatory tightening in Singapore and broader geopolitical uncertainty. Multiple sources show a sharp rise in inquiries and relocations to Dubai and Abu Dhabi from Chinese investors between 2024 and 2025. For many, the Gulf now offers what Hong Kong once did: an offshore, politically stable environment with favourable tax, legal, and residency frameworks.

This shift appears structural rather than cyclical. The GCC is emerging as a major global financial node, ranking sixth worldwide in total goods trade at US$1.5 trillion in 2023. At the same time, parts of the US and Europe are viewed by investors as increasingly unpredictable — politically or fiscally. London property, for example, is less widely regarded as the unquestioned safe‑haven asset it once was, as Gulf investors diversify away from traditional Western markets due to geopolitical scrutiny and strategic tensions. Stability has become the overriding priority for Asian families and corporates, and the Gulf is positioning itself as a dependable long‑term base.

Within this environment, Hong Kong retains a unique role as the most effective gateway into mainland China, where direct access remains challenging for many foreign investors. It also serves as a conduit for outbound Asian investment: many internationally active Chinese and regional companies are listed or headquartered in Hong Kong, making it a natural bridge for Gulf capital deploying into Asia. Early activity is concentrated in asset management and family office services. Firms often begin by setting up capital‑raising and investor relations teams in the Gulf before transitioning portfolio management and operational functions closer to the region.

Government‑driven initiatives are accelerating this process. Co‑investment platforms backed by sovereign capital — such as new Gulf‑Hong Kong investment vehicles showcased during the Asian Financial Forum — aim less at immediate returns and more at reducing friction and signalling long‑term commitment. These initiatives help make unfamiliar markets investable by creating early visibility and shared governance structures. Corporate operating investment, however, remains cautious; this cautiousness underscores why governments have stepped in to build precedents and frameworks for future private‑sector participation.

Investors across both regions are increasingly focused on governance, exit pathways, and the regulatory jurisdictions underpinning their structures. In this context, programmes such as the Belt and Road Initiative now function more as enabling platforms for financing, legal structuring, and cross‑border commercial cooperation than as political brands — much of the underlying work continues even as the terminology becomes less prominent.

Looking ahead, Hong Kong’s continued relevance to Gulf investors will hinge on its ability to stay predictable, operationally open, and genuinely useful in an era of fragmented capital flows. One of the most persistent misconceptions in the Gulf is that Hong Kong’s value lies only in its China access. In reality, Hong Kong is a super‑connector that enables complex two‑way investment flows — into Asia from the Gulf and into the Gulf from Asia. But new entrants must recognise the need for patient engagement and deep local understanding on both sides.

As capital becomes more selective, mobile, and sensitive to jurisdictional risk, the value of specialised, on‑the‑ground guidance increases significantly. Ocorian supports family offices, asset managers, corporates, and financial institutions navigating these cross‑border dynamics, drawing on local expertise and a global operating platform. From structuring and governance to administration, regulatory support, and long‑term operational resilience, we help clients remain agile as geopolitical and market conditions evolve. As financial centres recalibrate and new investment corridors emerge, trusted partners who understand both the granular detail and the broader direction of travel will be essential to sustainable growth.