The friendship between Hong Kong and Saudi Arabia has blossomed since SAR officials visited the Middle Eastern country two years ago, Deputy Financial Secretary Michael Wong said on Thursday.

At the Capital Markets Forum, co-organised by the Hong Kong and Saudi bourses, Wong said the two territories are discussing an investment promotion and protection deal and a number of organisations have signed memoranda of understanding on issues ranging from dispute avoidance and resolution to artificial intelligence.

He also pointed out that the SAR provides a fundraising platform for Saudi Arabian businesses to expand, serves as a springboard to access the mainland Chinese market, and offers opportunities to allocate offshore renminbi assets.

Wong stressed that the SAR and Saudi Arabia can help each other achieve their "ambitious goals in finance and well beyond".

"Saudi Arabia has clear and ambitious goals for the development of its financial markets, and it's cultivating a diversified and efficient financial sector that contributes to realising the objectives of Saudi Vision 2030," he said.

"Hong Kong, meanwhile, is an international financial centre, with a highly open and internationalised market and a regulatory regime that is aligned with major overseas markets. We adopt the best practices in the world... With our advanced capital markets, Hong Kong can be Saudi Arabia's partner and best friend."

He also revealed that the SAR administration is considering setting up an economic and trade office in Saudi Arabia, and that Cathay Pacific will resume direct passenger flights between Hong Kong and Riyadh in the fourth quarter of this year.

The new CEO of Hong Kong Exchanges and Clearing (HKEX), Bonnie Chan, told the same event that the SAR and Saudi Arabia have been working closely together.

"The HKEX has been playing its role by building more connectivity between Hong Kong and Saudi Arabia's capital markets," she said.

"We have signed a [memorandum of understanding] with Saudi Tadawul Group. We have added the Saudi exchange as one of our recognised stock exchanges. We listed the world's largest and Asia's first Saudi ETF on our markets, an important first step in enabling Hong Kong investors to get to know to the Saudi market."

Deputy Minister of Investment Development in Saudi Arabia, Saleh Al-Khabti, said Hong Kong could be more involved in the kingdom's development, as Riyadh aims to invest US$3.2 trillion into its economy by 2030.

"One thing that's very important is I believe we don't see enough participation from the Hong Kong financial sector and the role it can play to facilitate for China and the rest of Asia, becoming part of that beautiful story we have," he said.