Deals worth more than $50bn signed at KSA Future Investment Initiative

Saudi Energy Minister Khalid Al-Falih signed several of the deals announced at the FII. (Ziyad Alarfaj / AN)
Updated 23 October 2018

Deals worth more than $50bn signed at KSA Future Investment Initiative

RIYADH: At least 25 deals worth more than $50 billion have been signed at Future Investment Initiative (FII) in Riyadh.
The contracts struck on the first day of the event included what were described as 12 “mega deals.”

Among the projects announced on Tuesday in front of an audience of international bankers, investors and thought leaders, was the second phase of Haramain high-speed railway. 
The deals were struck across the energy and transportation sectors despite the boycott of the event by several company chiefs following the death of journalist Jamal Khashoggi at the Saudi embassy in Turkey earlier this month.
A number of major public transport projects, including the development of the Saudi Land Bridge project, a rail line connecting the Red Sea coast with Riyadh, were among the raft of deals signed.

Such large-scale infrastructure projects form a key part of Saudi Arabia’s Vision 2030 blueprint for economic and social diversifcation. It aims to reduce the country’s historical reliance on oil and gas revenues by investing in new industries that will also provide employment for the Kingdom’s youthful population.
Other deals were struck on Tuesday with Trafigura, Total, Hyundai, Norinco, Schlumberger, Halliburton and Baker Hughes.
Oil giant Saudi Aramco signed 15 initial agreements worth $34 billion.

Total CEO Patrick Pouyanné, told the gathering that the French oil and gas producer would announce a retail network in the Kingdom with Saudi Aramco.
The $10 billion Russian Direct Investment Fund also had a large presence at the event, led by Kirill Dmitriev.
Saudi Arabia’s Public Investment Fund (PIF), the main backer of the event, is driving the Kingdom’s economic reform agenda.
Managing director Yasir Al-Rumayyan said that the fund had invested in 50 or 60 firms via SoftBank Group’s Vision Fund and would bring most of those businesses to the Kingdom. PIF has committed to invest $45 billion in the Vision Fund.
The FII event, which debuted in the Kingdom last year, concludes on Thursday.

Saudi Arabia's Minister of Communications and IT Abdullah Al-Sawahah praised the speed at which Saudi Arabia is progressing in the digital worl, and said: "We are moving at light speed in becoming the tech hub of the region."

Meanwhile, Emirati businessman Mohamed Alabbar said: "There is so much room for technology growth and innovation in the Middle East, especially in Saudi Arabia, the UAE and the whole region." 


SoftBank to invest $40bn for new Indonesia capital

The new capital is to be built on the island of Borneo, where the Kutai National Park is known for its rainforests and its population of orangutans and other primates. (Shutterstock)
Updated 18 January 2020

SoftBank to invest $40bn for new Indonesia capital

  • Son joins Abu Dhabi crown prince and former British PM in steering committee for city

JAKARTA: Japan’s SoftBank is offering to invest $30 billion to $40 billion in the development of a new Indonesian capital, an official said Friday.

The billionaire founder and chief executive of SoftBank, Masayoshi Son, hinted at partnering with the Indonesian government to fund the project when he met President Joko Widodo last week in the capital, Jakarta.
Son and former British Prime Minister Tony Blair have been included in the steering committee to be led by Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al Nahyan to oversee the construction of the new capital city on the island of Borneo.
Indonesian Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan told a news briefing that SoftBank was offering $30 billion to $40 billion, though it was not immediately clear what project the Japanese conglomerate would invest in specifically.
“We have not yet decided how they would invest, it could be for education, a research center or hospital development,” Pandjaitan said. He said he will meet Son in Davos and Tokyo later this month to finalize the plan.
After meeting Widodo last week, Son told reporters that he was interested in supporting “a new smart city, the newest technology, a clean city and a lot of artificial intelligence.”
Widodo announced last August that Indonesia’s capital will move from overcrowded, sinking and polluted Jakarta to a site in the sparsely populated East Kalimantan province on Borneo, known for rainforests and orangutans.

BACKGROUND

The capital’s relocation to a 256,000-hectare (632,580-acre) site almost four times the size of Jakarta will cost an estimated 466 trillion rupiah ($34 billion). The government is set to begin the construction later this year.

The capital’s relocation to a 256,000-hectare (632,580-acre) site almost four times the size of Jakarta will cost an estimated 466 trillion rupiah ($34 billion). The government is set to begin the construction later this year.
Investors from Asia, the Middle East, the US and China have shown interest in developing the city, Pandjaitan said.
Jakarta, with 30 million people including those in the greater metropolitan area, is prone to earthquakes and flooding, and is rapidly sinking due to the uncontrolled extraction of ground water.
Monsoon rains and rising rivers early this month left more than 60 people dead and 500,000 displaced.
Mineral-rich East Kalimantan was once almost completely covered by rainforests before illegal logging removed much of its original growth. It is home to only 3.5 million people and is surrounded by Kutai National Park, known for orangutans and other primates and mammals.
Indonesia is an archipelago nation of more than 17,000 islands, but currently 54 percent of the country’s nearly 270 million people live on Java, the country’s most densely populated island where Jakarta is located.