Under the umbrella of Invest Saudi, Khalid Al-Falih, Minister of Investment of Saudi Arabia, oversaw the signing of three investment agreements on the second day of the 8th edition of the Future Investment Initiative (FII) in Riyadh.

 

The announcements follow the launch of a $300 million growth fund from Beta Lab and an MoU between Hassana Investment Company and the State Oil Fund of the Republic of Azerbaijan (SOFAZ) on the first day of FII.

 

SBI Holdings (Japan) and BIM Ventures announced their joint ventures to establish BIM Capital. Such collaboration fosters growth opportunities within Saudi Arabia and the broader Middle East, a release said.

 

Diverse portfolio

BIM Capital will focus on a diverse portfolio of investments, encompassing private equity, venture capital, debt funds, and real estate. This approach is designed to create substantial value within the region's financial and investment sectors.

 

Through this partnership, SBI Holdings and BIM Ventures aim to attract over $200 million in foreign direct investment and manage assets exceeding $2 billion (SR7.5 billion).

 

Additionally, SBI Holdings is investing with the National Technology Group on an ETF dedicated to investing in the Saudi Stock Exchange (Tadawul). The ETF will be listed on the Tokyo Stock Exchange on October 31. The Saudi ETF in Japan is designed to introduce Saudi equities to Japanese retail and institutional investors, aiming to broaden investment opportunities across both markets, and has a target of reaching financial investments equal to $750 million as AUM.

 

MISA and the International Finance Corporation (IFC) also signed an agreement to broaden and deepen cooperation in encouraging investment within the kingdom and abroad. 

 

PPPs and green finance

The agreement will provide the Saudi private sector with advisory and financial assistance, training, information exchange on global investment trends, technical expertise, and capacity building. IFC has maintained a 25+ year partnership with Saudi Arabia, investing a total of $5.5 billion since 2007, including $1.5 billion in public-private partnerships (PPPs). The current investment pipeline includes $1 billion for PPPs and green finance initiatives.

 

The announcements today follow two signed between Hassana Investment Company and the State Oil Fund of Republic of Azerbaijan and Saudi investment firm Beta Lab launching a $300-million growth fund with the Indonesian Investment Authority, Bank Central Asia Venture, MDI by Telkom Indonesia and Hong Kong UST. 

 

The announcements reflect Saudi Arabia’s strong investment momentum. Annual gross fixed capital formation has grown nearly 75% since 2017 to $297 billion in 2023, while FDI inflows have trebled to $26 billion over the same period, meaning both measures are ahead of the targets established in the kingdom’s National Investment Strategy. 

 

This growth has in part been driven by several pro-business measures in recent years, including the Civil Transactions Law, Private Sector Participation Law, Companies Law, Bankruptcy Law, Special Economic Zones and most recently an Updated Investment Law.--TradeArabia News Service