Saudi Sovereign Wealth Fund establishes USD3 Billion funding unit to grow activity in Iraq
Date
5/29/2023 3:37:14 AM
(MENAFN) Saudi Arabia's sovereign wealth fund is advancing its investment strategy in the Middle East and North Africa region by establishing a dedicated unit with a capital of USD3 billion to invest in various industries across Iraq. The newly formed investment unit, led by the Saudi-Iraq Investment Co., will be headquartered in the Kingdom and will actively seek funding opportunities in sectors such as infrastructure, mining, agriculture, real estate development, and financial services, among others. This initiative aligns with Saudi Arabia's vision to bolster economic ties and contribute to the reconstruction and development of Iraq.
The announcement was made during the Saudi-Iraqi Coordination Council, which took place in Jeddah. The establishment of the investment unit follows the commitment made by Saudi Arabia's Minister of Investment, Khalid Al-Falih, to allocate USD1 billion for reconstruction projects in Iraq. Additionally, USD500 million has been earmarked to support trade between the two countries, signaling the Kingdom's long-term commitment to fostering economic cooperation and bilateral investment.
Furthermore, the Iraqi government is actively engaging with Saudi companies, including Aramco, to collaborate on the development of the Akkas gas field in the western Anbar province. This significant project has the potential to produce over 400 million cubic meters of gas per day, highlighting the mutual interest in harnessing Iraq's vast energy resources.
The Saudi-Iraq Investment Co. is one of the six regional investment vehicles that the Public Investment Fund (PIF) of Saudi Arabia intends to establish in countries such as Jordan, Bahrain, Sudan, Oman, and Egypt. As a key driver of Saudi Arabia's Vision 2030, the PIF plays a vital role in realizing the Kingdom's economic diversification goals. By creating strategic investment opportunities and forging partnerships with regional counterparts, Saudi Arabia aims to foster sustainable economic growth and strengthen its position as a leading investor in the region.
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