Hong Kong Needs Arabic and Islamic Finance Professionals to Draw in Middle Eastern Capital

Hong Kong is being advised to focus on cultivating a skilled talent pool with in-depth expertise in Middle Eastern affairs and Islamic finance to attract investments from affluent Middle Eastern families and companies. Derrick Tan, a seasoned private banker with over two decades of experience serving wealthy Asian clients, suggests that the city should establish long-term training programs and recruit talent globally to cater to the needs of Middle Eastern investors. Tan, who serves as the chairman of Wrise Group Holdings, emphasizes the importance of simplifying the process for Middle Eastern clients to open bank accounts in Hong Kong. According to a report from Standard Chartered in April, the global Islamic finance industry, operating under Sharia Islamic law and principles, is currently valued at around $2.2 trillion and is anticipated to surpass $4.94 trillion by 2025. The increasing demand for Islamic financial products such as sukuk (bonds) and takaful (insurance) is expected to be driven by various entities, including Islamic banks, sharia-compliant sovereign wealth funds, asset management companies, pension funds, and family offices.

Key figures in Hong Kong, including Chief Executive John Lee Ka-chiu, Financial Secretary Paul Chan Mo-po, and Hong Kong Monetary Authority (HKMA) CEO Eddie Yue Wai-man, have led delegations to Middle Eastern countries in an effort to strengthen relationships and attract investments. The recent collaboration between HKMA and the Central Bank of Saudi Arabia in the fintech sector underscores Hong Kong's proactive stance in pursuing Middle Eastern investments. Despite these initiatives, Tan underscores the necessity of having professionals proficient in Arabic language, Islamic finance, and the nuances of Middle Eastern cultures to effectively serve the needs of Middle Eastern tycoons. He observes a shortage of individuals in Hong Kong with expertise in these areas compared to the abundant talent in China's financial sector. To address this gap, Tan recommends incentivizing the recruitment of individuals with Middle Eastern client experience or sending local talent for overseas learning experiences in the region.

Nelson Chow, chairman of the Hong Kong Investment Funds Association, sees potential for Hong Kong to attract Middle Eastern family offices seeking to diversify their investments. He suggests that the city could implement additional policies to encourage and facilitate this interest. Chow envisions that once Middle Eastern investors have positive experiences in Hong Kong, the city can expand its offerings to include other fund products and investment vehicles for investors from the region.