Tsangs Group, PIF-owned developer team up on tech investments
Hong Kong single family office Tsangs Group plans to use its collaboration with Saudi Arabia’s Public Investment Fund-owned real estate group, ROSHN Group, to facilitate technology venture capital investments in areas such as renewable energy and robotics.
Meanwhile, the family office will help catalyse business exchanges between Hong Kong, the Greater Bay Area (GBA), and Saudi Arabia, in alignment with the long-term development of the Gulf country.
“Our readiness to engage in collaborative ventures remains contingent upon identifying family offices that align with our investment objectives and values. We believe that fostering synergistic partnerships in the future could yield mutually beneficial outcomes,” said Patrick Tsang, chairman of the Tsangs Group.
The remarks came after the family office signed a memorandum of understanding (MoU) in collaboration with the Hong Kong Ambassadors Club (HKAC) and the ROSHN Group in December of last year, to explore opportunities between the two parties in technology investments.
“This partnership aims to create an ecosystem and bilateral investment pipelines between Hong Kong, the GBA, and Saudi Arabia, with a strategic focus on key investment sectors, to strengthen both Saudi Arabia and Hong Kong as global technology hubs,” Tsang told AsianInvestor.
“Hong Kong will serve as a gateway to mainland China and the global market, while Saudi Arabia will act as a gateway to the MENA (Middle East and North Africa) region,” he added.
ROSHN Group is a Saudi real estate developer. It is committed to helping the nation achieve one of its Vision 2030 goals of 70% home ownership for Saudi citizens.
HKAC is a private and non-profit club co-founded by Tsang to host exclusive gatherings for wealthy families and businesspeople globally, with the aim of promoting Hong Kong’s attractiveness for family offices.
Under the MoU, both parties are especially interested in tech investments in areas such as smart city, healthcare, sustainability, artificial intelligence, robotics, new materials, biotech, and fintech, with a focus on fast-growing, sustainability-related companies.
MUTUAL BENEFITS
ROSHN Group's role will be to facilitate expansion of impactful technology companies from Hong Kong into Saudi markets.
This includes A-Grade Energy, a renewable energy material and technologies company, and Rice Robotics, a smart logistics robot services company that can be integrated into ROSHN Group’s real estate projects.
Both A-Grade Energy and Rice Robotics are Tsangs Group’s portfolio companies. The family office is helping expand their businesses into the Middle East.
On the other hand, Tsangs Group and HKAC are supporting the ROSHN Group to go to Hong Kong and the GBA, enabling them to identify and partner with tech companies that align with their growth objectives and strengthen their investment portfolio, according to Tsang.
Patrick Tsang, chairman of Tsangs Group (left) signs an MoU with Yassen Kattan, head of strategic and corporate affairs at ROSHN Group (right) in November 2023. (Source: Tsangs Group)
“Our collaboration with Tsangs Group and HKAC embodies our commitment to furthering Vision 2030's objectives by fostering investment partnerships in the technology sector and building a diverse and sustainable economy,” said David Grover, group chief executive officer of ROSHN Group.
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“This MoU marks a pivotal moment for ROSHN, highlighting our role in promoting growth and prosperity in the Kingdom. Hong Kong has long served as a gateway and hub for technological investment in the Asia-Pacific region, and we are enthusiastic about our contribution to transforming the Kingdom into a global technology hub,” Grover said in a statement.
Geopolitical developments between China and Saudi Arabia made Hong Kong an increasingly attractive proposition for the Gulf country.
In December last year, Hong Kong was the first Asian host for Saudi Arabia’s flagship global investment summit, the Future Investment Initiative (FII) Priority.
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In the same month, the Hong Kong government and the Ministry of Investment of Saudi Arabia also signed an MoU to foster cooperation on investment promotion exchange.
Tsangs Group opened its Dubai office in early 2022 to tap early-stage capital investments across the Middle East in fintech, agricultural technology, clean energy, and food technology.
It also signed an MoU with Saudi Arabia's Ministry of Investment in June 2023 to facilitate business collaboration.