RIYADH: Saudi Arabia’s Public Investment Fund has signed agreements worth up to $9.5 billion with two World Bank Group institutions to unlock investment, support economic development and create jobs in the Kingdom and across emerging markets.
A $6 billion agreement with International Finance Corp. explores co-financing opportunities on projects in sectors including infrastructure, energy, transport, tourism and healthcare, while also promoting knowledge sharing and encouraging private investment.
A $3.5 billion deal with the Multilateral Investment Guarantee Agency will explore providing credit guarantees to facilitate financing for PIF portfolio companies operating in Saudi Arabia and other regional markets. The cooperation will focus on areas including decarbonization, the development of innovative industries and job creation.
PIF said the partnerships were aimed at supporting Saudi Arabia’s economic diversification and attracting private investment into strategic sectors.
As one of the world’s largest sovereign wealth funds the PIF plays a central role in financing and developing many of Vision 2030’s flagship projects.
Rasees Al Saud, head of financial institutions and investor relations at its Global Capital Finance division, said the agreements reflected the fund’s strategy of expanding partnerships with international financial institutions to support investment opportunities for its portfolio companies in Saudi Arabia and abroad.
John Gandolfo, IFC’s vice president and chief financial officer, said the partnership would help to mobilize private capital, strengthen cross-border investment and exchange knowledge to boost the energy–food–water nexus and create private sector jobs.
Junaid Kamal Ahmad, vice president of operations at MIGA, said the agreement would support the Vision 2030 economic diversification strategy by attracting international investment that drives transformative projects and creates jobs.
