Hong Kong’s finance chief says bilateral trade with Gulf states surged 35 per cent in the first five months of 2026. Capital flows from Gulf sovereign wealth funds into Asia reached about 40 per cent of their global allocations last year.
Financial Secretary Paul Chan Mo-po reported the increase during a speech highlighting growing economic links. Trade between the Gulf states and Hong Kong had risen only about 5 per cent in the previous year.
Trade with the United Arab Emirates alone jumped more than 52 per cent in the same five-month period of 2026. Chan noted that Gulf sovereign wealth funds allocated tens of billions of US dollars globally last year.
“In terms of capital flows, Gulf sovereign wealth funds previously invested mainly in American and European markets. However, of the tens of billions of US dollars they allocated globally last year, about 40 per cent flowed into Asia,” he said.
“This reflects a clear shift in their asset allocation, with a diversified asset allocation strategy gradually taking shape,” Chan added.
