RIYADH: Jadwa Investment and Khazanah Nasional Berhad, the investment arm of the Malaysian government, have signed a partnership agreement. Under the terms of the agreement, Khazanah will acquire an equity stake in Jadwa worth SR284.25 million, which represents 10 percent of Jadwa’s capital.
This partnership will provide Jadwa with access to investment opportunities in Southeast Asian markets, where Khazanah enjoys a strong foothold. In addition, the agreement will foster the exchange of know-how and expertise in the area of Islamic investment banking in which Malaysia is a pioneer.
Khazanah manages the strategic investments of the Malaysian government and is chaired by the prime minister of Malaysia. The company has stakes in more than 50 companies worldwide with assets under management (AUM) in excess of $20 billion, diversified over several sectors including banking, energy, IT, airport management, infrastructure, telecommunications, vehicle manufacturing and real estate development.
Prince Faisal bin Salman, Jadwa’s chairman, said, “This transaction solidifies the cooperation between our two companies in the areas of business development and the exchange of expertise and products. It is especially significant as we are both located in important and strategic regions of the world in terms of both population and availability of opportunities. Our dealings with Khazanah over the past few months have made it clear to us how serious they are in their investment orientation toward the region in general and Saudi Arabia in particular. This agreement will improve Jadwa’s competitive position and access to international markets.”
Ahmed Al-Khateeb, Jadwa’s managing director and CEO, added: “We are pleased that Khazanah is entering into partnership with Jadwa and we look forward to working closely and exchanging expertise in order to develop the Islamic banking industry. Malaysia is ahead of many Islamic countries in the Sukuk industry, which provides an ideal solution for long-term project finance as well as for Shariah-compliant options and derivatives”.
Commenting on the agreement, Khazanah Managing Director Tan Sri Dato’ Azman Hj Mokhtar said: “The investment will foster stronger bilateral ties and economic cooperation between Malaysia and Saudi Arabia and increase trade between the two Muslim countries. During times of crisis, one must strengthen alliances and friendships. This investment is an important milestone for Khazanah as it represents the continued strengthening of economic and bilateral relations between Malaysia and Saudi Arabia. We anticipate that, Insh’Allah, this signing is just the first step in a long and mutually supportive relationship.”
