Officials are planning another visit to the Middle East in a bid to attract family offices to Hong Kong, the government has said, stressing that such wealth management firms do not require approval locally amid controversy over a Dubai prince’s commitment to investing in the city.
The Financial Services and the Treasury Bureau also said in a social media post on Saturday that recent “talk of the town” showed a general lack of understanding about family offices, but steered clear of mentioning Sheikh Ali Rashed Ali Saeed Al Maktoum.
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In a post presented in a question-and-answer format, the bureau said Hong Kong welcomed family offices of all asset sizes and would not intervene in their investment decisions.
“The establishment of a family office in Hong Kong does not require special government approval, and the government does not invest in or provide financial assistance to individual family offices established in Hong Kong,” it said.
“It is entirely up to the family office to decide which investment projects an individual family office will undertake in Hong Kong.
“The government will not be involved in its investment decisions. As long as they are compliant, Hong Kong will welcome them.”
Stringent checks on investors could send wrong message about Hong Kong: sources
Stringent checks on investors could send wrong message about Hong Kong: sources
The bureau was also planning another visit to the Middle East region to continue exploring relevant business development opportunities, it said.
Chief Executive John Lee Ka-chiu paid a weeklong visit to the United Arab Emirates and Saudi Arabia in February last year as the government sought alternative sources of investment amid heightened geopolitical tensions between China and the West.
Maktoum also began his shift from a performer to a sustainability focused investor last year. No updates have been posted on Alira’s TikTok page since last June, while the sheikh began attending investment forums in Dubai in the third quarter and visited Hong Kong in December.
His second visit to the city last month included speaking at a session of the Wealth for Good in Hong Kong summit. However, his decision to postpone the launch of his high-profile family office in the city at the last minute sparked questions among some about his commitment to the investment.
Government sources previously said that only “basic” checks were performed before the sheikh’s engagement, as they feared a stringent review might offend the VIP.
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The bureau made no mention about the due diligence efforts in its Saturday post, but it reiterated that it was “rare to see such a grand gathering” of high-calibre guests from royal families, international enterprises, financial institutions and philanthropic groups.
It also said a meeting was held on March 26 between Lee and about 30 speakers and prominent guests “to express the importance attached to the notable guests”. Maktoum was one of them.
The post followed comments by Aaron Shum Wan-lung, founding president of the Hong Kong-Middle East Business Chamber, who told a number of media outlets that the prince might have felt offended after learning of a seemingly “downgrade” of officials attending the now-postponed opening ceremony.
No checks done on Dubai prince before he met Hong Kong’s John Lee
No checks done on Dubai prince before he met Hong Kong’s John Lee
But two government sources said authorities were mindful that sending a high-ranking official to the opening of one particular office might create perception problems for others that they were not receiving equal treatment.
A source said the latest blog post was meant to put an end to the controversy and it was hoped members of the public would have a better idea on family business offices.
The private office declined to comment on Shum’s remarks.
The bureau also noted that Hong Kong’s low tax regime, political stability and rule of law, would allow family offices to flourish in the city.
