Dubai: Saudi Arabia's Public Investment Fund (PIF) enters memorandums of understanding (MoUs) totalling up to $51 billion (Dh187 billion) with five major Japanese banks.
The sovereign wealth fund announced that these agreements aim to promote bilateral capital flows through both debt and equity investments.
The MoUs were signed with Mizuho Bank, Sumitomo Mitsui Financial Group, MUFG Bank, Japan Bank for International Cooperation, and Nippon Export and Investment Insurance, as reported by the PIF.
PIF stated that these deals are part of its broader strategy to enhance global financial collaboration and strengthen investment ties.
The agreements involve both PIF and its portfolio companies, as well as Japanese firms and financial institutions.
Additionally, on Thursday at the Future Investment Initiative (FII) in Riyadh, PIF signed an agreement with the Hong Kong Monetary Authority to establish a new investment fund targeting $1 billion.
This fund will focus on companies linked to Hong Kong in sectors like manufacturing, renewable energy, fintech, and healthcare that are looking to expand into Saudi Arabia.
The investments are expected to create skilled jobs in Saudi Arabia and provide companies with a foothold in the Middle East.
PIF emphasised that this proposed fund aligns with its goals of economic diversification and sustainability.
The country has set a target of attracting $100 billion (Dh367 billion) in annual foreign direct investment by 2030, but lower-than-expected inflows have increased pressure on PIF to support its ambitious $1.25 trillion (Dh4.5 trillion) economic development plan.
