The sovereign wealth fund of Saudi Arabia has recently launched a dedicated entity, furnished with a $3 billion capital, aimed at channelizing investments within various sectors in Iraq. This move is in line with the Kingdom’s broader strategy to deepen its investment footprint in the Middle East and North Africa (MENA) region.
Muteb Al-Shathri, the acting CEO of Saudi-Iraq Investment Co., announced that this newly formed investment division, which will operate from the Kingdom, is set to explore and finance ventures in sectors including infrastructure, mining, agriculture, real estate development, and financial services.
The disclosure came during the Saudi-Iraqi Coordination Council in Jeddah. It follows statements by Saudi Arabia’s Investment Minister Khalid Al-Falih regarding a $1 billion commitment for Iraq’s reconstruction endeavors, along with an additional $500 million to bolster trade relations between the nations.
Concurrently, the Iraqi government is engaged in discussions with Saudi enterprises, such as Aramco, for the potential development of the Akkas gas field in Anbar province, with prospects of producing over 400 million cubic meters of gas daily.
The Saudi-Iraq Investment Co. is one among six regional investment arms established by the Public Investment Fund (PIF) in countries such as Iraq, Jordan, Bahrain, Sudan, Oman, and Egypt, evidencing the fund’s expansive regional investment agenda.
The PIF is at the forefront of Saudi Arabia’s Vision 2030, a strategic framework aimed at diversifying the nation’s economy. The fund’s endeavors are pivotal in achieving the economic diversification goals set by the Kingdom.
Earlier this year, data from the Sovereign Wealth Fund Institute positioned the PIF as the sixth largest globally, with assets totaling $607.42 billion. The fund’s portfolio spans across 71 companies in 10 different industries, having already generated over half a million jobs, both direct and indirect.
Back in November 2022, PIF Governor Yasir Al-Rumayyan pledged the fund’s commitment to creating 1.8 million jobs, emphasizing the focus on not just the quantity but also the quality of these employment opportunities.