Hong Kong Seeks Arabic, Islamic Finance Experts To Lure Middle East Customers

Hong Kong is setting its sights on becoming a hub for Islamic finance and Middle Eastern expertise in the banking sector. The city-state is actively seeking to attract and cultivate a talent pool with skills in Arabic and Islamic finance, to draw in companies and affluent entities from the Middle East looking to invest in the city.

In a bid to enhance the ease with which Middle Eastern customers can open bank accounts and invest in the city, Hong Kong is planning to bolster its offerings by recruiting banking professionals with expertise in the Gulf markets. Derrick Tan, a seasoned private banker who has been serving affluent clients across Asia for over two decades, noted that Hong Kong is keen on establishing a long-term training program or importing talent to attract Middle Eastern investors to the city.

Tan highlighted that Middle Eastern customers often face difficulties in setting up personal bank accounts in Hong Kong. The global Islamic finance industry, which is governed by Sharia Islamic laws, currently boasts assets worth approximately $2.2 trillion. This sector is projected to grow and reach a valuation of $4.94 trillion by 2025.

Despite the stringent regulations surrounding this sector, the demand for Islamic products such as sukuk and takaful has seen a surge. This increase is due to a combination of Islamic banks merging with Sharia-compliant sovereign wealth funds, pension funds, asset management firms, family offices, and sovereign wealth funds.

Throughout the year, key players in the Hong Kong financial industry, including Chief Executive John Lee Ka-Chiu, the CEO of the Hong Kong Monetary Authority, Eddie Yue Wai-man, and Financial Secretary, Paul Chan Mo-po, have been leading efforts to attract investments to the country and strengthen ties.

In June, the UAE Central Bank and the HKMA announced their collaboration to enhance cross-border payments and investments between the two countries. Yue, the CEO of HKMA, also secured an agreement with the Central Bank of Saudi Arabia to promote fintech projects in both regions.

Hong Kong’s financial industry boasts a vast talent pool that is well-versed in language and culture. This sector has a robust network that will serve clients within the mainland. The active capital market across Hong Kong, backed by China, is set to attract investors from the Middle East. However, Tan pointed out that the city lacks a pool of individuals who speak Arabic and understand the requirements of the Islamic finance sector. Furthermore, there is a limited number of people in the Hong Kong financial sector who understand the background of countries across the Middle East.

These challenges have made it increasingly difficult for local financial companies to cater to the needs of tycoons in the Middle East. Current solutions include offering incentives to attract local talent and sending Hong Kong youth to these countries to learn the guidelines and culture. As Hong Kong continues to build its expertise in Islamic finance and the Middle East, it is poised to become a significant player in this growing sector.