Source: Reuters
Hong Kong: Major Middle Eastern banks are accelerating their expansion in Hong Kong as they seek to deepen connectivity with China and support growing trade and investment flows between the Middle East and Asia.
According to a Reuters report, First Abu Dhabi Bank, the UAE’s largest lender by assets, plans to nearly double its office space in Hong Kong, while Mashreq Bank is set to relocate to a larger office in the city’s central business district during the third quarter of 2026.
Meanwhile, Sohar International recently received approval from the Hong Kong Monetary Authority (HKMA) to establish a representative office in Hong Kong, marking the Omani lender’s first international market expansion. The bank is expected to commence operations in the second half of the year.
The expansion reflects increasing efforts by Gulf financial institutions to internationalize operations and strengthen economic links with China amid robust cross-border trade and investment activity between the two regions.
“Our growth in Hong Kong is firmly anchored in our ability to provide banking solutions facilitating the increasing trade and investment flows between Greater China and MENA,” said Chermaine Lai, Country Head of Mashreq Bank Hong Kong.
Mashreq added that its new office will be double the size of its current premises and highlighted Hong Kong’s role as a “significant offshore hub for China-related financing activity.”
Industry experts noted that ongoing geopolitical tensions in the Middle East may have accelerated strategic investment decisions by Gulf lenders in Hong Kong.
Sam Gourlay, Head of Office Leasing Advisory at JLL Hong Kong, said the recent regional conflict may have prompted some banks to fast-track expansion plans in the city.
Hong Kong continues to position itself as a key gateway to China, offering international banks access to corporate banking, trade finance, treasury services, wealth management, and cross-border investment opportunities.
The HKMA stated that it has actively promoted Hong Kong’s financial ecosystem to Middle Eastern markets through bilateral engagements with regional central banks in recent years.
The three Gulf banks are reportedly set to operate from Cheung Kong Center II in Central Hong Kong.
Middle Eastern lenders have increasingly expanded beyond their domestic markets through international branch launches, acquisitions, and partnerships. Earlier this year, India’s central bank approved Emirates NBD’s proposal to acquire a majority stake in RBL Bank.
FAB has also strengthened its Asia footprint through offices in Hong Kong, Shanghai, and Singapore, and last year became a direct participant in China’s Cross-Border Interbank Payment System (CIPS), reinforcing growing UAE-China financial ties.
Mashreq has also expanded across Asia, particularly in India and Pakistan, where its digital banking platform Mashreq NEO became fully operational last year.
According to HKMA data, five Middle Eastern lenders currently maintain a banking presence in Hong Kong among nearly 200 registered banks in the city.
