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The Financial Secretary, Mr John C Tsang, who is leading a business delegation to the Middle East, started his visit to Riyadh in Saudi Arabia today (December 7).
The visit started with a breakfast briefing for the delegation on the latest economic developments of the Saudi Arabia market by SABB Bank.
This was followed by a meeting with the Governor of the Saudi Arabian Monetary Agency (SAMA), HE Dr Fahad Almubarak. SAMA representatives gave an overview of the Saudi economy. Both sides exchanged views on a wide range of financial issues, including the development of Islamic finance and offshore Renminbi business.
Mr Tsang then met with the Minister of Finance of Saudi Arabia, HE Dr Ibrahim bin Abdulaziz Al-Assaf. Both sides expressed the wish to consolidate the bilateral relationship and co-operation between Hong Kong and Saudi Arabia, in particular in Renminbi business.
At a business luncheon co-organised with the Riyadh Chamber of Commerce and Industry, Mr Tsang spoke on Hong Kong's strengths and how they can help Saudi business, in particular, the development of Islamic finance, asset management and Renminbi business.
Mr Tsang pointed out that Hong Kong amended laws last year to provide a level playing field between sukuk and conventional bonds in terms of tax treatment, covering the most common types of sukuk in the market.
In September this year, the Hong Kong Government issued its first sukuk which also marked the first US dollar-denominated sukuk originated by a triple A-rated government in the global Islamic financial market. The issuance was greeted with strong demand, attracting orders in excess of US$4.7 billion.
"Through the inaugural sukuk offering, we demonstrated that the legal, regulatory and taxation framework in Hong Kong can easily accommodate sukuk issuance.
"We welcome more sukuk to be marketed, listed and executed in Hong Kong. And we invite more Islamic financial institutions to establish a presence in Hong Kong," he added.
In the afternoon, Mr Tsang will hold separate meetings the Minister of Economy and Planning of Saudi Arabia, Dr Muhammad Al-Jasser and the Chairman of Kingdom Holdings, HRH Prince Alwaleed Bin Talal.
Mr Tsang will also attend a dinner hosted by the Chinese Ambassador to Saudi Arabia, Mr Li Chengwen.
Mr Tsang will continue his visit to Riyadh tomorrow (December 8) before heading for Abu Dhabi. The objectives of his visit to Saudi Arabia and the United Arab Emirates are to strengthen trade and investment ties with these two countries and promote Hong Kong's strengths as an international financial centre and offshore Renminbi business centre.
Ends/Sunday, December 7, 2014
Issued at HKT 22:22
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