Markets & Regions
Hong Kong and the Middle East: A Business Corridor Coming of Age
Trade between Hong Kong and the Middle East has grown by nearly a third since 2019, with trade offices, tax treaties and capital-market links multiplying. What is driving the corridor and how businesses are using it.
For most of the last century, Hong Kong's commercial ties ran east-west through London and New York, and north-south through mainland China and Southeast Asia. Over the past few years, a new direction has grown in importance: west, towards the Gulf.
The numbers are still modest compared with Hong Kong's largest partners, but the trend is clear, and it is being built deliberately.
The corridor in numbers and institutions
According to the Hong Kong Trade Development Council (HKTDC), Hong Kong's trade with the Middle East rose by nearly a third between 2019 and 2025. That is slower than the roughly 60% growth recorded with ASEAN over the same period, but it comes with a fast-growing institutional network:
- Trade offices. The HKTDC has offices in Dubai and Riyadh, alongside Johannesburg, Nairobi and Tel Aviv, and has said it plans an office in Cairo in 2027, with Qatar, Oman and Kuwait under consideration.
- Tax treaties. Hong Kong has comprehensive double tax agreements with the United Arab Emirates, Saudi Arabia, Qatar and Kuwait.
- Events and missions. The 2026 Belt and Road Summit in Hong Kong added a dedicated Middle East zone, and trade delegations have visited Abu Dhabi, Dubai, Riyadh, Doha and Kuwait in recent years.
- Capital markets. Hong Kong-listed exchange-traded funds tracking Saudi equities launched in 2023, and Gulf investors have taken part in major Hong Kong listings.
Regional instability in 2026 has slowed some activity and disrupted some travel. The structural reasons for the corridor, however, have not changed.
Why the corridor is growing
Asia is the Gulf's largest trading partner
Energy exports flow east; manufactured goods, machinery and technology flow west. Much of that trade involves mainland China, and Hong Kong has long been the place where Chinese and international business meet.
Diversification on both sides
Gulf economies are investing heavily beyond oil and gas, in logistics, technology, tourism and finance. Hong Kong, for its part, is looking for growth beyond its traditional markets. Each side brings capital, and each side wants new partners.
Familiar financial architecture
The UAE dirham, Saudi riyal and Qatari riyal are pegged to the US dollar. The Hong Kong dollar is linked to the US dollar too. For companies trading between the two regions, US dollar accounts in Hong Kong remove most currency risk, while renminbi accounts handle payments to Chinese suppliers.
How businesses are using it
The most common patterns we see are:
- Gulf trading companies sourcing from Asia through a Hong Kong subsidiary that contracts with suppliers, pays them in US dollars or renminbi, and handles quality and logistics.
- Asian manufacturers and exporters selling into the Gulf from a Hong Kong company that invoices Gulf distributors.
- Family businesses and investors holding Asian investments through Hong Kong.
- Service firms advising on projects in both regions, with staff and contracts managed from Hong Kong.
We look at the practical set-up for the first two in our guide to using a Hong Kong company for Gulf trade.
The payment question
One practical friction point is payments. Transfers between the Gulf, Hong Kong and the rest of Asia usually work well through banks. But when the same company also deals with suppliers or customers in Africa or South Asia, correspondent banking chains can become slow and expensive.
This is where combining traditional bank rails with newer settlement options, such as regulated stablecoins, is starting to make a difference. Hong Kong's stablecoin licensing regime, in force since August 2025, gives companies a regulated framework to do this. Our cross-border payments service is built for exactly these corridors.
Frequently asked questions
Does Hong Kong have tax treaties with Gulf countries?
Yes. Hong Kong has comprehensive double tax agreements with the United Arab Emirates, Saudi Arabia, Qatar and Kuwait, among others.
Why would a Gulf company use Hong Kong?
Mainly to source from Asia, bank in US dollars and renminbi, contract under common law with Asian partners, and access Hong Kong's capital markets and investors.
Are Gulf currencies easy to manage from Hong Kong?
Several Gulf currencies, including the UAE dirham, Saudi riyal and Qatari riyal, are pegged to the US dollar, as is the Hong Kong dollar within a band. US dollar accounts in Hong Kong therefore work well for Gulf trade.
Sources
This article is general information, not legal or tax advice. Rules and figures can change; confirm details for your situation before acting.
