Saudi Arabia’s Public Investment Fund (PIF) has signed six agreements valued at up to $50 billion with leading Chinese financial institutions to enhance bilateral capital flows.
According to a press release, the Kingdom’s sovereign wealth fund signed memoranda of understanding with China Construction Bank, Agricultural Bank of China, China Export and Credit Insurance Corp., Bank of China, Export-Import Bank of China, and the Industrial and Commercial Bank of China.
The agreements focus on facilitating two-way capital movement through both debt and equity instruments. PIF’s strategy includes cultivating global institutional alliances, as emphasized by Fahad Al-Saif, head of the Global Capital Finance Division and the Investment Strategy and Economic Insights Division at PIF. He highlighted that these MoUs reflect PIF’s robust and expanding relationships with prominent financial institutions worldwide.
This initiative is part of Saudi Arabia’s broader efforts to fortify economic ties with China. In June 2024, PIF-backed Riyadh Air signed a significant agreement with China Eastern Airlines to enhance future connectivity and collaborate on digital transformation, further cementing its entry into the Chinese market.
#PIF has signed six MoUs worth up to $50 billion with leading financial institutions.
— Public Investment Fund (@PIF_en) August 1, 2024
Read more: Saudi Arabia’s Crown Prince transfers another 8 percent of Aramco shares to PIF
The Saudi wealth fund has also forged strategic partnerships with Singapore Airlines and Air China, focusing on interline connectivity, codeshare arrangements, and potential collaborations in areas such as frequent flyer programs, cargo services, customer experience, and digital innovation.
Since its inception in 2017, PIF has founded 95 companies and is actively building a diversified portfolio across 13 strategic sectors both domestically and internationally. As outlined in the PIF Program 2021-2025, a Vision 2030 realization program, the fund aims to inject at least SAR150 billion annually into the local economy, support promising sectors, and increase local content through private sector partnerships.
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