Hong Kong Bankers’ Guide to the Middle East

Hong Kong bankers are increasingly eyeing opportunities in the Middle East as interest in Asia’s self-acclaimed “World City” increases. This trend is marked by notable developments like the upcoming market forum co-hosted by the Hong Kong Exchange and its Saudi Arabian counterpart. As revealed by Bloomberg, this partnership signals the emerging collaboration between the two regions.

Moreover, Bahrain-based Investcorp Holdings recently unveiled plans to launch a $1 billion fund. This initiative targets Chinese companies listed in Hong Kong, further highlighting increased cross-regional investment strategies.

Bloomberg’s insights noted that the Middle East’s favorable tax environment is a significant catalyst for growing interest as the region’s “zero” income tax starkly contrasts Hong Kong’s 16% maximum rate.

This factor, coupled with the substantial wealth of Gulf countries, promises appealing prospects for financial professionals seeking tax-efficient opportunities. “Countries in the Middle East are so wealthy that four of the world’s top 10 sovereign wealth funds are from the Gulf—those in Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. So read their lips: They don’t need your taxes,” Bloomberg stated.

However, individuals pointed out lifestyle adjustments such as increased “housing cost” and little reliance on public transportation in the region. Although accommodations in the Middle East are more spacious, sources expressed that Hong Kong offers a more efficient public transit system and unique natural landscapes away from the city center.

Moreover, people stressed the varying alcohol regulations across Gulf cities. While Dubai and Abu Dhabi offer relatively liberal access to alcohol, cities like Riyadh have strict prohibitions. This highlights the importance of understanding cultural norms and regulations in prospective relocation destinations.

Furthermore, for individuals seeking halal dietary requirements, the Middle East offers an array of such restaurants, including “Non-Muslim Only” supermarkets. Given these, financial experts considering relocation should examine factors such as taxation, lifestyle preferences, and cultural nuances before deciding.