Financial Secretary Paul Chan on Tuesday said Hong Kong is dedicated to strengthening ties with the Middle East in face of escalating geopolitical tensions.

Delivering a keynote speech at a global regulatory forum, Chan said Hong Kong will launch Asia's first-ever exchange traded fund (ETF) in Saudi Arabia.

"We continue to pursue other measures to further strengthen our role as a super-connector between the mainland and the rest of the world,” he said.

“In a world heavily drifted by geopolitics and Middle East investors looking for opportunities to diversify, Hong Kong is no doubt best positioned to connect the capital and the vast investment opportunities between the Gulf region and Asia."

The finance chief also told the forum that Hong Kong's stable financial system will help the city ride out external threats and short-term challenges.

He added that the city is committed to boosting domestic market liquidity through a wide range of measures, such as adjustments to the listing regime and the expansion of mutual access between the Hong Kong and mainland financial markets.