Other BriefingsDubai Opens Hong Kong Trade Office, Eye On Free Trade Agreement
The Dubai International Chamber of Commerce has announced the establishment of its new international office in Hong Kong, to drive mutual economic and business growth. The announcement was made on the sidelines of the UAE-Hong Kong Business Forum, which took place on February 9, in Dubai.
The office will promote trade from Hong Kong to Dubai and attract more businesses from there to the emirate, while also expanding Dubai’s Asia Pacific presence. It will also collaborate with the Hong Kong Trade Development Council (HKTDC) and other government and private sector entities to leverage the growth of both economies.
Abdul Aziz Abdulla Al Ghurair, Chairman of the Dubai Chamber said “Dubai and Hong Kong have longstanding relations spanning decades. This MoU strengthens the existing relationship and will boost trade and investment between our two economies. I look forward to seeing continued collaboration with our Hong Kong counterparts, especially with the presence of our new international office in Hong Kong.”
The UAE is the largest trading partner for Hong Kong in the Middle East – non-oil trade between the UAE and Hong Kong reached Dhs22.2 billion (US$6 billion) in the first half of 2022, registering a year-on-year growth of 16.2%.
Hong Kong’s Chief Executive, John Lee stated that the island is “keen to build ever stronger economic, trade and investment ties with the UAE.” Hong Kong has a separate economy from mainland China with differing import and export tariffs. Many international businesses use Hong Kong as a regional hub, as its own CEPA trade agreements with China can provide benefits when accessing the Chinese market.
Lee said that a bilateral free-trade agreement will be the “logical next step” for Hong Kong and the United Arab Emirates (UAE) to boost investment ties. “Strengthening investment and trade partnerships with Hong Kong supports the strategic cooperation between the UAE and China and contributes to opening new business fields,” he said.
Dubai, as part of the UAE, has several multilateral and bilateral trade agreements, including with partner countries in the Gulf Cooperation Council (GCC). As part of the GCC, the UAE has strong economic ties with Saudi Arabia, Kuwait, Bahrain, and Oman, meaning the UAE shares a common market and a customs union with these nations. Under the Greater Arab Free Trade Area Agreement (GAFTA), the UAE has free trade access to Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, Jordan, Egypt, Iraq, Lebanon, Morocco, Tunisia, Palestine, Syria, Libya, and Yemen.
Hong Kong has signed eight free-trade deals with 20 economies, including a unique accord with mainland China called the Closer Economic Partnership Arrangement. Others include New Zealand, members of the Association of Southeast Asian Nations (ASEAN) and member states of the European Free Trade Association.
Dezan Shira & Associates has offices in Dubai and Hong Kong and assists foreign investors in both. We typically provide business case studies, corporate establishment, tax advisory and related business services to clients throughout the Asian region. For assistance please contact asia@dezshira.com
Related Reading
- Hong Kong’s Tax, Investment, and Trade Agreements with Countries in the Middle East
- China’s Tax, Investment, and Trade Agreements with Countries in the Middle East
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