The Hong Kong Exchanges and Clearing Limited (HKEX) announced Thursday that it has added the Saudi Exchange as a recognized stock exchange, a move that is expected to boost financial ties between Hong Kong and the Middle East.

The addition will allow companies with a primary listing on the Saudi Exchange's main market to apply for a secondary listing in Hong Kong, the HKEX said in a statement.

HKEX Head of Listing Katherine Ng said that the Saudi Exchange is a well-established stock market that hosts a diverse range of companies from Saudi Arabia and across the Middle East, representing sectors including energy, industrials and healthcare.

"We hope to create more opportunities for leading international companies to seek a listing in Hong Kong," she said.

The recognition followed a Memorandum of Understanding signed in February between HKEX and the Saudi Tadawul Group, the operator of the Saudi Exchange, to explore cooperation in a number of areas, including cross-listing opportunities.

With the addition of the Saudi Exchange, the HKEX now has 16 recognized stock exchange across 15 countries.