China likely ‘to benefit from $10 trillion Mideast sovereign funds boost’

China is likely to benefit from the Middle East’s sovereign funds, as their investment capital is forecast to reach $10 trillion by 2030, according to the CEO of the Hong Kong Stock Exchanges and Clearing Ltd.

Speaking on the second day of the 10th Arab-China Business Conference, Nicolas Aguzin, predicted regional sovereign funds’ resources to swell by 150 percent, up from the current $4trillion.

“As investment capital goes to $10 trillion, we think that more than somewhere between 10 and 20 percent will be invested in China. That’s between $1 trillion and $2 trillion that will be reallocated in investments in that part of the world which is, like, massive,” the CEO said.

He also reflected current and future collaborations involving the HKEX and Saudi Arabia, such as the recent memorandum of understanding with the Kingdom’s stock exchange, also known as Tadawul.

“In Saudi Arabia, we signed an MoU with Tadawul whereby we’re looking at areas that range from fintech to cross listings to ESG, to see ways in which we could collaborate,” Aguzin said.

The CEO also highlighted the attractiveness of the Hong Kong market.

“The key attractiveness that I would say an international company has in terms of leveraging the opportunities that are provided by the Hong Kong market is that it’s the only market in the world where you can get the best investors from the global international markets and the best investment based on the domestic Chinese capital markets, including retail and institutional investors,” he clarified.

Investment opportunities, economic growth, and closer trade relations are on the agenda at the 10th Arab-China Business Conference.

The two-day event seeks to explore synergies in technology, artificial intelligence, renewable energy, agriculture, real estate, and strategic minerals.

The conference has been organized by the Saudi Ministry of Investment in partnership with the Chinese Council for the Promotion of International Trade and a host of other regional associations.

The event saw a series of plenaries, workshops, special meetings, and side events dedicated to topics such as environmental, social and governance, and supply chain resilience. It attracted more than 3,500 business leaders, innovators, and policymakers from 26 countries.