Gulf capital flowing into Asia as trade with Hong Kong rises 35%: Paul Chan
Finance chief says bilateral trade surged in first five months of 2026 following deepening of ties in recent years
Capital from the Gulf is showing signs of flowing into Asia, Hong Kong’s finance chief has said, as bilateral trade between the region and the city rose by 35 per cent year on year in the first five months of 2026.
While trade between the Gulf states and Hong Kong rose by about 5 per cent last year, the figure increased by 35 per cent year on year in the first five months of 2026, he added.
In particular, Chan highlighted that bilateral trade between the city and the United Arab Emirates had surged by more than 52 per cent over the same period.
“In terms of capital flows, Gulf sovereign wealth funds previously invested mainly in American and European markets. However, of the tens of billions of US dollars they allocated globally last year, about 40 per cent flowed into Asia,” he said.
“This reflects a clear shift in their asset allocation, with a diversified asset allocation strategy gradually taking shape.”