RIYADH: Hurt by low oil prices Saudi Arabia is teaming up with Japan’s SoftBank to start a new technology investment fund worth up to $100 billion. The deal would create the world’s largest private equity fund and could potentially obtain a leading position in the industry.
SoftBank plans to invest at least $25 billion, while Riyadh is weighing in at least a $45 billion investment over the next five years into what’s been provisionally called the SoftBank Vision Fund. “Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector,” SoftBank Chairman Masayoshi Son said in a statement.
The London-based fund expects several other large global investors to commit money, according to the Japanese company. Riyadh’s investment is a part of a government plan to diversify the kingdom’s oil-based economy. Saudi Arabia is facing a nearly $100 billion budget deficit, the biggest among the world’s top-20 economies. Earlier this year, the kingdom invested $3.5 billion in US ride-hailing firm Uber.
