UAE, Hong Kong Discuss Investment Opportunities; City Chief Says 'Free-Trade Agreement' Next Logical Step

The United Arab Emirates and Hong Kong on Thursday discussed how the two countries can further strengthen ties in terms of trade, investment, economy and other crucial sectors.

The UAE is the Hong Kong Special Administrative Region's largest trading partner in the Middle East.

The chief executive of Hong Kong, John Lee, met His Highness Vice President and Prime Minister of the UAE Sheikh Mohammed bin Rashid Al Maktoum at the Za'abeel Palace in Dubai on Thursday to discuss how the nations can strengthen bilateral ties further, state news agency WAM reported.

During the meeting, Sheikh Mohammed bin Rashid reiterated the UAE's commitment toward enhancing its strategic cooperation with Hong Kong to boost global trade.

For his part in the meeting, Lee also applauded the two sides' cooperation, and said he hoped the parties can continue to broaden collaboration in different aspects of bilateral trade.

Lee also said that the "logical next step" after the discussions would be to establish a bilateral free-trade agreement (FTA), the South China Morning Post (SCMP) reported.

"An FTA between Hong Kong and the UAE, therefore, is the logical next step in our relations. I'm confident it would substantially boost trade and investment ties between us," he said.

While the countries have held discussions on how to strengthen bilateral ties, formal discussions have yet to be started over a potential agreement, as per the SCMP. A source told the outlet that if the UAE did decide to strike a deal with Hong Kong, it might take months before a decision is made.

So far, the Hong Kong Science and Technology Parks Corporation has signed memorandums of understanding (MOUs) with its Emirati counterpart, a tech start-up, an architectural firm and a smart city operator based in Abu Dhabi.

The meeting between Lee and Dubai's ruler came a day after an eight-day visit to the UAE by a Hong Kong delegation that included top government officials and business leaders, as per China Daily.

On Wednesday, Lee attended a luncheon hosted by the Abu Dhabi Ports Group to discuss with logistics industry leaders in the Emirati capital. During the luncheon, Lee noted that he believed companies from the UAE and Hong Kong can cooperate to take advantage of China's Belt and Road Initiative (BRI).

During the UAE-Hong Kong Business Forum and Lunar New Year Gala Dinner on Wednesday night, representatives from the two countries held a panel discussion themed "HK and UAE: Partnering in Economic Diversification."

Lee will complete his UAE trip on Saturday after previously traveling to Saudi Arabia's capital of Riyadh, where he closed six deals between Hong Kong firms and their Saudi counterparts.