On Thursday, PIF of Saudi Arabia announced that it has signed a series of cooperation agreements with six top Chinese financial institutions with a total value of up to $50 billion. The focus of the agreement is to promote bilateral capital flows through debt and equity.
On August 2nd, CaiLian Press released news edited by Li Lin and Chen Yujia, that Sovereign wealth fund of Saudi Arabia, Public Investment Fund (PIF), announced on Thursday that it has signed a series of cooperation agreements with six top Chinese financial institutions with a total value of up to $50 billion, aiming to strengthen the flow of capital between the two countries. This cooperation marks an important step for Saudi Arabia in deepening its economic ties with China.
According to a news release published by PIF, the fund signed MOUs with China Construction Bank, China Agricultural Bank, Sinosure, Bank of China, Exim Bank of China and ICBC, aiming to promote capital flows in both directions through debt and equity.
Fahad Al-Saif, head of PIF's Global Capital Finance and Investment Strategy and Economic Insight Department, emphasized that these MOUs reflect the strong and expanding cooperation relationship between PIF and leading global financial institutions.
This cooperation is part of a series of measures taken by Saudi Arabia to strengthen its economic ties with China. Prior to this, Saudi Arabia's supported airline, Flyadeal, had signed an important agreement with China Eastern Airlines to improve future connectivity and jointly promote digital transformation, further consolidating Saudi Arabia's position in the Chinese market. In addition, PIF has established strategic partnerships with Singapore Airlines and Air China, focusing on route connections, code sharing arrangements and potential cooperation in frequent flyer programs, freight services, customer experience and digital innovation.
Since its establishment in 2017, PIF has set up 95 companies and actively built diversified investment portfolios in 13 strategic areas at home and abroad. According to the PIF 2021-2025 plan, the fund aims to inject at least 150 billion Saudi riyals (about $40 billion) into the local Saudi economy each year, support promising industries and enhance local content through cooperation with the private sector, helping achieve the Vision 2030 goal.