Saudi’s PIF signs $50b deals with Chinese financial institutions

Saudi Arabia’s Public Investment Fund (PIF) announced on Thursday the signing of six memorandums of understanding (MoUs) worth a total of $50 billion with leading Chinese financial institutions.

The MoUs were inked with the Agricultural Bank of China, Bank of China, China Construction Bank, China Export and Credit Insurance Corporation, Export-Import Bank of China, and Industrial and Commercial Bank of China.

The new partnerships will focus on encouraging two-way capital flows through both debt and equity instruments.

The PIF, one of the world’s largest sovereign wealth funds, has a diverse portfolio ranging from date farms to multinational conglomerates.

The kingdom’s Vision 2030 plan aims to shift its economy from fossil fuels to a thriving private sector for economic diversification.

In July, China expressed eagerness to enhance co-operation in areas of infrastructure, energy resources, green development, and the digital economy. It also welcomed Saudi companies, including its sovereign wealth funds and oil giant Aramco, to continue to “take root” in China.

Attribution: Reuters