Hong Kong companies eye buoyant Middle East markets

The steady economic growth being witnessed in the Middle East is increasingly attracting Hong Kong’s business community to the region, a fact that was emphasized during the recently concluded ‘Summer Sourcing Show for Gifts, Houseware and Toys’ in Hong Kong. The fourth edition of the annual Show was organised by the Hong Kong Trade Development Council. Economies in the Middle East region continued to grow robustly - thanks to strong oil revenues - with real GDP increasing by 6.3 per cent in 2006; the best growth performance for the region in more than 10 years. The high oil prices also

boosted regional liquidity, fueling a boom in the local stock and real estate markets. The stock market boom partly reflects improved fundamentals as well as substantial privatization programmes in some countries of the region.

Speaking at the seminar held on the sidelines of the Summer Sourcing Show in Hong Kong, Nidal Abou Zaki, Managing Director of Orient Planet PR & Marketing Communications, said, “It is encouraging to know that an increasing number of companies in Hong Kong are recognizing the business potential of the Middle East and are keen on establishing operations here. The increasing oil prices and a steady growth being witnessed in several key sectors of the economy have meant that the Middle East presents an attractive investment option for investors from around the world.

The Middle East region as a whole is moving towards a knowledge-based digital economy, which has resulted in an increased emphasis on technology products. Also, with IT spending in public and private sectors increasing, the regional markets are emerging as powerful buyers of technology related products. There is increasing evidence that IT and technology imports from Hong Kong will assume greater importance in the coming years. As public and private sectors alike, focus on keeping up with technology uptake, sustained spending and major investment on education will see the emergence of a new well-informed corporate consumer class, for many of Hong Kong’s high tech exports.