Hong Kong is rolling out the red carpet for Saudi and Emirati travelers with a love of luxury.

Armed with data that show visitors from Saudi Arabia and the UAE are likely to spend some $1,450 a day when they visit, Hong Kong tourism officials have launched a new campaign aimed at the Gulf to promote their plush hotels, Michelin-starred Cantonese restaurants and South China Sea landscapes.

At a time that political friction weighs on Chinese ties with the U.S. and Europe, Hong Kong – classified as a Special Administrative Region of China with limited autonomy – is broadening its focus and finding a wealthy audience in the GCC region eager to explore Asia in style.

“Since 2010 we have watched the GCC market grow, especially Dubai, which is now a global capital,” Henry Wong, Director of Trade Development at Hong Kong Tourism Board (HKTB), told The Circuit. “We believe it’s the right time to focus” on Saudi Arabia and the UAE.

The new attention to the Gulf was evident at the Arabian Travel Market conference in Dubai that took place in May, where the HKTB set up its largest booth ever with representatives from more than 30 hotels, travel agencies and cultural institutions.

In October, the tourism agency will sponsor a trade mission to Riyadh and Dubai, bringing in representatives from Hong Kong hotels and other businesses for networking with the Gulf travel industry.

During the travel conference in May, Hong Kong officials signed draft agreements with the UAE government to expand tourism within the GCC market and with the dnata Travel Group to strengthen partnerships with Gulf airlines and travel agencies. The UAE also signed a preliminary agreement with the China Cultural Center to facilitate air travel to China and organize promotional trips to familiarize UAE travel agents with the world’s second most populous country.

Among the attractions being promoted this year are the Palace Museum, the West Kowloon Cultural District, M+ and the Art Basel Hong Kong art fair, Becky Ip, Deputy Executive Director of HKTB, told The Circuit

“GCC travelers used to travel more to Europe and even Thailand and Malaysia,” she said. “Now I think they are prepared to go beyond these places and see more of the east.”

Property investors and developers from the Gulf are eyeing Australia as a major international market, with a shortage of housing creating an environment of high returns and significant long-term growth potential.

Australian real estate companies are holding roadshows and meetings with leading developers, family offices and funds from the UAE and Saudi Arabia this week, Arabian Business reports.

And earlier this month, UAE developer Arada announced it was making its international debut in Australia, where it plans to build 2,500 homes in Sydney. Strong population growth in Australia has led to severe housing shortages in major cities, including Sydney, Melbourne, Perth and Brisbane.

A potential property boom in the run-up to the 2032 Olympic Games in Brisbane is also driving interest from investors.

However, Gulf-based companies are likely to face some unfamiliar challenges in Australia, where the construction industry is heavily controlled by unions.

More than 10,000 workers went on strike across the country today in protest over a forced federal takeover of the main building union following allegations of corruption and criminal infiltration by biker gangs.

Five agreements signed with U.S. finance and property firms during last week’s visit to America by Saudi Arabia’s Housing Minister, including with BlackRock and Apollo Global Management, should give a further boost to the kingdom’s rapidly growing home construction industry.

The preliminary deals aim to strengthen the mortgage refinancing market, expand property funding and attract foreign investments. With Minister of Municipalities and Housing Majid Al-Hogail looking on, the Saudi Real Estate Refinance Co. – owned by the Public Investment Fund – signed agreements with BlackRock and King Street Capital that are meant to diversify funding sources through the fixed-income market.

The Saudi Mortgage Guarantee Services, known as Damanat, also signed two partnership agreements with BlackRock and Apollo to develop investment strategies and funds for real estate financing. Al-Hogail’s ministry, meanwhile, signed a preliminary agreement with K. Hovnanian Homes, a New Jersey-based developer hired to build more integrated residential communities in Saudi Arabia.

The kingdom has set a goal to increase home ownership to 70% by 2030 from its current level of about 60%. The new agreements aim to facilitate reaching the target by making it easier for Saudi citizens to find new homes and finance the purchases.

The UAE’s pursuit of closer trade ties with fast-growing economies in the Middle East, Asia and Africa saw its non-oil foreign trade hit a record $381 billion in the first half of 2024, up 25% compared to the same period last year. Non-oil exports made up 18.4% of total trade, compared to 16.4% for H1, 2023.

The double-digit expansion in foreign trade defied a global trend in slowing trade growth, spurred on by the signing of so-called comprehensive economic partnership agreements with several countries, Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, said in a statement on Sunday. 

The new trade figures show “the UAE economy’s resilience, which is the result of our steadfast commitment to building strong, productive public-private partnerships as well as fostering collaborative growth with emerging global economies,” Al Zeyoudi said.

The Emirates, which is planning to sign similar trade deals with 26 countries, has so-far inked agreements with India, Turkey, Israel, Indonesia, Cambodia and Georgia, and is negotiating with Serbia, Vietnam, the Philippines, New Zealand and Ecuador.

The deals are considered critical to achieving the UAE’s ambitious target of close to $1.1 trillion in non-oil foreign trade by 2031.

Qatar’s $2.7 billion investment in plans to build train lines, roads and bridges has turned the country into the second-most expensive construction market in the Middle East behind Saudi Arabia.

According to a survey by Turner & Townsend, the torrid pace with which Qatar built stadiums and infrastructure to support its hosting of the 2022 World Cup soccer championship drove up prices as companies had to compete to hire skilled employees and purchase construction materials.

Among the biggest ventures now underway are the Doha Metro, the Bahrain-Qatar causeway, and the multi-billion dollar Sharq Bridge, which will connect Katara Cultural Village with Hamad International Airport.

Much of the current thrust is aimed at completing those projects in time for 2030 when Qatar hosts the Asian Games, Turner & Townsend said.

After an eight-week gaming extravaganza, Saudi Arabia’s inaugural Esports World Cup at Riyadh’s Boulevard City will wrap up this weekend, with four final tournaments and a high-octane closing ceremony planned for Sunday night.

The champions of fighting game Tekken 8 will be crowned this evening, followed by finals for battle royale shooter PUBG, vehicular soccer hybrid Rocket League and racing game ESL R1 on Sunday.

The matches will conclude a marathon event that has featured 22 tournaments across 21 titles, with an estimated 2,500 gamers slogging it out for their share in the $60 million prize pool.

Hosting the biggest event in esports history has put Saudi Arabia front and center in the global gaming market. Crown Prince Mohammed bin Salman, a fan of the Call of Duty zombie military game, has earmarked $38 billion from the Public Investment Fund to help spur on the local industry, with the aim of attracting 250 gaming companies and studios to the kingdom.

While the competition wraps up, Saudi leadership will be turning their focus to the business end of gaming, with the New Global Sports Conference kicking off tomorrow.

More than 60 speakers and 1,200 delegates from the esports, gaming and entertainment industries will converge at Riyadh’s Four Seasons, with the kingdom’s plans to host the Olympic Esports Games from next year high on the agenda.

Bank of Singapore is betting on the Middle East.

The Asian lender aims to double its business in the region to about 20% of its overall revenue and private banking assets over the next three to five years, Ranjit Khanna, Bank of Singapore’s head of private banking for Europe and the Middle East and chief executive for its Dubai hub, told Reuters in an interview.

“UAE and in particular Dubai have become key destinations for global millionaires post-COVID,” Khanna said.

Bank of Singapore is among a growing number of Asian financial firms that have set up offices in the UAE to capitalize on warming ties between China and the Middle East.

“I personally believe the next decade, in the context of wealth management, belongs to Asia and the Middle East to a great extent,” Khanna said.

A new stablecoin pegged to the dirham will be launched by Abu Dhabi tech conglomerate Phoenix Group in collaboration with global cryptocurrency company Tether, as the UAE ramps up efforts to become a global hub for the crypto industry. 

Stablecoins, a digital currency backed by traditional government currencies such as the U.S. dollar or euro, are designed to keep a consistent value and have seen rapid growth as an alternative to more volatile cryptocurrencies, such as Bitcoin.

The dirham is pegged to the U.S. dollar, meaning that a stablecoin linked to the Emirati currency gives consumers an alternative to Tether’s popular U.S. dollar stablecoin, while maintaining the same currency exposure.

“The main purpose is actually creating an optionality towards the U.S. dollar,” Tether CEO Paolo Ardoino told Reuters. Licensing by the UAE Central Bank is expected to take a few months, with a launch date yet to be announced. 

The dirham launch comes as Abu Dhabi’s Blockchain Center partnered with Gate Ventures this week to launch Falcon Gate, a $100 million Web3 innovation fund.