The Public Investment Fund (PIF) and the Hong Kong Monetary Authority will establish a USD 1 bn investment fund, after the two signed a landmark MoU on the final day of the Future Investment Initiative (FII) forum in Riyadh last week, according to a press release.

The new fund is set to focus on manufacturing, renewables, fintech, and healthcare, with the goal of attracting companies from Hong Kong and the Greater Bay Area to set up operations in Saudi Arabia. In addition to supporting localization, the fund aims to boost foreign direct investment from Hong Kong by providing a platform for companies to expand internationally and tap into opportunities within the Kingdom.

IN CONTEXT- The PIF is shifting its strategy towards domestic investments, with plans to reduce overseas exposure from 30% to 18-20%, to support domestic diversification projects and encourage co-investment from foreign firms within the Kingdom.

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