Saudi Arabia has announced the launch of a new $24 billion fund to bolster key sectors in five neighbouring countries Bahrain, Oman, Jordan, Sudan and Iraq.
Launched by Crown Prince Mohammed bin Salman bin Abdulaziz, Prime Minister, Chairman of the Council of Economic and Development Affairs and Chairman of the Public Investment Fund (PIF), the initiative will include the establishment of five investment firms in these countries to boost key sectors such as infrastructure, real estate development, mining, healthcare, financial services, food and agriculture, manufacturing, telecoms, and technology among others.
The announcement follows the launch of the Saudi Egyptian Investment Company (SEIC), a wholly owned PIF subsidiary, in August 2022.
The announcement comes on the second day of the 6th Edition of the Future Investment Initiative (FII), which is taking place in Riyadh, with the participation of leading investors, innovators, and world leaders.
According to PIF, the five new companies will contribute to an increase in regional investment opportunities for PIF’s portfolio companies and Saudi Arabia’s private sector, bolstering attractive financial returns over the long term, and creating more avenues for strategic economic collaboration with the private sector in the target countries as well as enabling the Saudi private sector.
These investments by PIF align with the Fund’s strategy, which includes seeking new investment opportunities in the Middle East and North Africa to build lasting strategic economic partnerships and achieve sustainable returns, grow PIF’s Assets Under Management, and diversify Saudi Arabia’s sources of revenue, while underscoring the objectives of Vision 2030.
