Middle East banks eye Hong Kong as ‘safe haven’ amid Iran threats, InvestHK head says

Middle East banks and wealthy investors are poised to increase their investments in Hong Kong amid geopolitical tensions to diversify their risk and capture growing opportunities in Asia, according to the head of InvestHK, the government agency tasked with attracting foreign investment.A couple of Middle East banks were in the process of setting up offices in Hong Kong with the help of InvestHK, said Alpha Lau Hai-suen, its director general.These additions would strengthen the city’s ties with the region, as at present only four out of more than 150 licensed banks in Hong Kong were based in the Middle East, according to data from the Hong Kong Monetary Authority (HKMA).Lau did not disclose the newcomers’ names, as they are in the process of applying for licences from the HKMA.“The Middle East money has already shown interest in Hong Kong for some time,” Lau said in an exclusive interview with the South China Morning Post. “Recently, I have seen that there are even more practical inquiries as people look to set up operations in Hong Kong.”This was not surprising as Iran has threatened to bomb financial institutions in the Middle East, she added.