Saudi Arabia's Public Investment Fund and Russian Direct Investment Fund together are going to invest $10 billion into Russian projects, including agriculture.
Saudi Arabia to invest record $10bn in Russia
Saudi Arabia's Public Investment Fund and Russian Direct Investment Fund together are going to invest $10 billion into Russian projects. It is the largest foreign investment in Russia.
"We have reached final agreements and are announcing the creation of a partnership with the sovereign fund of Saudi Arabia, under which PIF will invest $10 billion into projects on Russian territory. These funds are expected to be implemented within 4-5 years,” said the head of RDIF Kirill Dmitriev.
According to Dmitriev, first four or five deals are going to be signed within next three months. He also hopes these upcoming deals could attract investors from China, South Korea and the United Arab Emirates. The RDIF is planning to carry out ten deals with Saudi PIF before the end of the year, seven of those are already in their final stages.
PIF expressed interest in investing in agriculture, medicine, retail, logistics and real estate, says Dmitriev.
The Russian and Saudi Arabian funds’ partnership does not exclude the possibility of investment in other countries.
The RDIF has also signed a cooperation agreement with the Saudi Arabian General Investment Authority, to jointly search for investment projects in Russia. SAGIA is supposed to lead Russian companies to the Arabic market.
Last month Russia and Saudi Arabia signed a number of cooperation deals, including a memorandum of understanding at the St. Petersburg Economic Forum. Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud meeting with Russian President Vladimir Putin played an important part in the new partnership, according to the head of RDIF.