Financial Secretary Paul Chan said on Monday he would lead a delegation to Saudi Arabia this month as part of the efforts to further strengthen bilateral investment and trade with the Middle East while seizing opportunities offered by the growing Islamic financial and economic sectors.

He made the remarks at a forum themed "Understanding the Halal Market: Strategies for Unlocking Opportunities", organised by the Hong Kong General Chamber of Commerce and the Federation of Hong Kong Industries.

The halal market, or halal economy, refers to the global market for products and services that conform to the Islamic law, Sharia, while Islamic finance are banking activities that also comply with the law as well as moral principles.

Chan said the halal economy is expanding at an "impressive pace", contributing a "striking" 15 percent to global growth last year, while household consumption in Muslim economies, or countries under the Organisation of Islamic Cooperation (OIC), surpassed US$5 trillion.

He said Hong Kong is well positioned to capture on this momentum, serving as a two-way platform for mainland and SAR firms to enter the halal markets and for Muslim investors and businesses to enter China.

"The rise of the halal economy reflects a broader shift that signals the growing economic influence of the Global South," Chan told forum participants.

"Later this month, I will lead a delegation to Saudi Arabia, bringing together a strong team of Hong Kong and mainland companies in sectors, such as artificial intelligence, biotech, fintech, green energy and more."

Notably, exports from the mainland to OIC nations have rocketed by over 80 percent over the past decade, reaching nearly US$600 billion, while imports from these countries soared 60 percent to US$450 billion, Chan noted.

With the SAR's new economic and trade office set to open in Kuala Lumpur this year, he added, officials will also accelerate efforts to set up another office in Riyadh to expand the city's presence in Muslim markets.

The city is gearing up to host Leap East, an extension of Saudi Arabia's Leap innovation conference, in July to further enhance collaboration, which will mark the first time that the Middle East's signature AI event is held outside the Middle East.

The SAR, he added, has also issued over US$3 billion in sukuk, which are financial products whose terms and structures comply with Sharia, also commonly referred to as "Sharia-compliant" bonds.

Chan also noted that the city, which has 190 halal-certified restaurants and more than 60 Muslim-friendly hotels and attractions, was recently named the "most promising Muslim-friendly destination" by the Global Muslim Travel Index.

In the first eight months of the year, the city received nearly half a million visitors from Indonesia and Malaysia, a 10 percent jump year on year, while travellers from the Middle East soared by 40 percent year on year to reach 54,000.

"Our next step is to scale up our international promotions, so that more Muslim travellers will discover what Hong Kong has to offer," he said.

"This will further reinforce our mutual business, investment and people-to-people relationships," he added.