Saudi panel gives approval to set up investment fund

Saudi Arabia has given initial approval for the establishment of a special investment fund that will contribute to the reconstruction effort in Iraq.

The General Committee of the Saudi Council of Ministers has agreed, in principle, to establish a Saudi investment fund for the reconstruction of Iraq.

The committee opened talks with analysts who will supervise the organisational and legal aspects of the fund as well as future projects. The committee will approve the nature of the fund's financial and investment activities after approval.

Individuals will not be allowed to contribute to the fund because of the high risks. The fund will also support use of Saudi products in projects in Iraq.

The analysts will work with representatives of the ministries of foreign affairs, finance, commerce, industry planning, defence and aviation, interior and the Saudi Arabian Monetary Agency. The committee will prepare a comprehensive study on the legal and organisational aspects of the fund.

The committee members agreed that the nature of the fund should be financing and investment to be able to contribute to the reconstruction effort with the money collected from leading investors for commercial, industrial and real estate purposes after the necessary approval has been obtained from the relevant authorities.

One of the major objectives of the fund will be to provide support to Saudi factories through the use of local material in the projects to be financed or implemented by the fund.