View Arab investors as more than genies in magic lamps
After the somewhat dramatic postponement of the opening ceremony of the family office of the prince from Dubai, Sheikh Ali Rashed Ali Saeed Al Maktoum, news reports now say he is from a distant branch of the emirate’s ruling family.
But whether Maktoum has a close kinship with Dubai’s ruler should not be the subject of debate. Instead, the selection of potential investors from abroad in general is what the Hong Kong government should pay more attention to.
While there is no doubt that the Middle East is a region with much untapped potential overlooked by the government for years, one must be careful not to romanticise investors from oil-rich lands with the stereotypical (and sometimes racist) image of an Arab man in a keffiyeh, having piles of cash and a collection of supercars back home.
The tantalising opportunities available may open up a Pandora’s box of troubles if business plans are not carefully scrutinised. The United Arab Emirates has largely kept away from unnecessary foreign intervention and conflicts. However, not every country in the region shares the same pragmatic attitude.
Hastily engaging with these players may push purely business matters into the realm of diplomacy – not something that the Hong Kong government can or should deal with. Institutional changes are required, and they encompass more than devising a protocol for checking summit speakers. Appointing third-party consultancies may help filter out questionable investors in the short term, but the Hong Kong government appears to lack the talent required to strategise in the grand scheme of things and to comprehend the complex geopolitics of the region while making long-term arrangements.
Unless we want to find ourselves in a new geopolitical predicament on top of worsened China-United States relations, seeing investors from Arab states as genies in magic lamps would eventually lead to disillusionment. For now, the Hong Kong government may have to ramp up the nurturing of young leaders with a holistic understanding of international relations to meet the changing needs of this global financial hub before it is too late.