During an investment ceremony under the umbrella of Invest Saudi, Khalid Al-Falih, Minister of Investment of Saudi Arabia, oversaw the signing of three investment deals on the second day of the 8th edition of the Future Investment Initiative (FII8) in Riyadh.
The three announcements follow two agreements signed on the first day of the conference between Hassana Investment Company and the State Oil Fund of the Republic of Azerbaijan, and between the Saudi investment firm Beta Lab and the Indonesian Investment Authority, Bank Central Asia Venture, MDI by Telkom Indonesia and Hong Kong UST to launch a $300 million growth fund.
BIM Capital launched
On FII8’s second day, 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. BIM Capital will focus on a diverse portfolio of investments, encompassing private equity, venture capital, debt funds, and real estate. This approach aims 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.
ETF to invest in Tadawul
During FII8, Saudi Arabia’s investment ministry also announced an investment by Japan’s SBI Holdings and the National Technology Group. This investment is for 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 will introduce Saudi equities to Japanese retail and institutional investors in a bid to broaden investment opportunities across both markets. Moreover, it has a target of reaching financial investments of $750 million as assets under management.
$1 billion for PPPs and green finance initiatives
Saudi Arabia’s Minister of Investment also announced the signing of an agreement between MISA and the International Finance Corporation (IFC). The agreement aims to broaden and deepen cooperation in encouraging investments within Saudi Arabia and abroad.
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. This also includes $1.5 billion in public-private partnerships (PPPs). The current investment pipeline includes $1 billion for PPPs and green finance initiatives.
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FDI inflows grow three-fold to $26 billion
The Ministry of Investment (MISA) has played an active role in FII8, hosting a workshop on opportunities in the Kingdom’s financial sector and senior executives, including Minister of Investment, speaking on key panels on the conference’s main plenary as well as at high-level summits on Middle East-Africa relations and female economic empowerment.
These announcements reflect Saudi Arabia’s strong investment momentum. Annual gross fixed capital formation has grown nearly 75 percent since 2017 to $297 billion in 2023. Meanwhile, FDI inflows have grown three-fold to $26 billion over the same period. Both measures are ahead of the targets of Saudi Arabia’s National Investment Strategy.
This growth has in part been driven by several pro-business measures in recent years. This includes the Civil Transactions Law, Private Sector Participation Law, Companies Law, Bankruptcy Law, Special Economic Zones, and most recently an Updated Investment Law.
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