PIF + HKMA to help companies enter the Saudi market: The Public Investment Fund (PIF) and the Hong Kong Monetary Authority (HKMA) are setting up a USD 1 bn fund to support the expansion of Hong Kong and Greater Bay Area companies into the Kingdom, Hong Kong Financial Secretary Paul Chan said in a conference yesterday. The initiative is designed to support the development of non-oil economic sectors in the Kingdom.

The new fund builds on earlier cooperation agreements: Chan’s visit to Saudi Arabia last month saw him explore deeper collaboration in investment, innovation, and technology development with PIF Governor Yasir Al Rumayyan, according to a press release. The trip saw the signing of five agreements between the Hong Kong delegation and Saudi partners. Three tech firms from Hong Kong and mainland China also sealed partnerships with local enterprises in AI, robotics, and smart sensing.

Hong Kong-based players are already stepping up activity in Saudi: Private equity firms HongShan Capital Group and Boyu Capital took part in Tabby’s USD 4.5 bn secondary share sale. Meanwhile, Hong Kong-listed oil and gas pipes manufacturer Dalipal Holdings will establish a pipeline manufacturing hub in Dammam amid plans to raise USD 600 mn through a private offering to finance the first phase of its Saudi expansion.

What’s next? A major Saudi development company will hold a roadshow in Hong Kong next month to attract strategic partners and professional service providers to support upcoming infrastructure projects, Chan revealed.

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