Saudi wealth fund targets $24bn investment in Arab states

Saudi wealth fund targets $24bn investment in Arab states

Saudi Arabia’s sovereign wealth fund plans to invest $24bn in six Arab countries as the kingdom enjoys an oil boom and seeks to bolster its soft power in the region.

The Public Investment Fund said in a statement it would set up companies in Iraq, Jordan, Bahrain, Oman and Sudan that would seek investments across sectors ranging from infrastructure and healthcare to finance and food.

In August, the PIF began this process by establishing a similar investment company for Egypt, where the fund has already spent $1.3bn acquiring minority stakes in four firms, including fertiliser and tech companies.

While Saudi Arabia and the Gulf’s other large oil exporters have enjoyed a huge petrodollar windfall as energy and food prices have soared since Russia invaded Ukraine, poorer states in the Middle East are struggling with deepening economic and social pressures.

Saudi Arabia, the United Arab Emirates and Qatar have deposited $13bn in Egypt’s central bank this year as it struggles with a foreign currency shortage.

The wealthier Gulf states have traditionally aided their allies with loans and central bank deposits, but in recent years they have made their assistance more conditional. And under day-to-day ruler Crown Prince Mohammed bin Salman, Saudi Arabia’s support has been shifting