RIYADH: Direct investment opportunities between Saudi Arabia and Hong Kong are set to grow after a new agreement was inked. A memorandum of understanding focusing on greater cooperation across funding avenues was signed in the Asian city in presence of the Kingdom’s Minister of Investment, Engineer Khalid bin Abdulaziz Al-Falih. The agreement aims to enhance and encourage direct investment between Saudi Arabia and Hong Kong by facilitating the exchange of rules and regulations related to the business environment and its developments. The memorandum also seeks to support and promote exhibitions and work sessions, and facilitate exchange visits and experiences in order to enhance direct investment opportunities. The agreement came during the visit of a high-level Saudi delegation of government and private sector leaders to China and Hong Kong. The deal is the latest evidence of the Kingdom’s growing relationship with the city, which is classed as a special administrative region of China. In November, Hong Kong’s stock market became the first in the Asia Pacific region to allow investors to speculate on an exchange traded fund investing solely in Saudi Arabia’s equities market. The ETF tracks the FTSE Saudi Arabia Index, and has since attracted $1 billion in initial investment, making it one of the largest ever debuts in the territory. Ahead of its launch in November, Paul Chan, the financial secretary of the Hong Kong Government, said: “The asset size of this ETF is the largest of its kind in the world, and it can be said to be a practical example of the financial connectivity of the Belt and Road Initiative.” He added: “I look forward to more two-way co-operation on financial products between the two places in the future, so as to make financial connectivity and capital flow wider and broader.” In February 2023, both exchanges signed a memorandum of understanding to collaborate in sectors such as fintech and environmental, social, and governance, exploring listing opportunities.