The release of a U.S. intelligence report implicating Saudi Arabia’s Crown Prince Mohammed bin Salman in the killing of journalist Jamal Khashoggi has highlighted the political risk for companies and investors of doing business with the kingdom.
Saudi Arabia, which rejected the report’s findings, is keen to attract foreign investors to help end its dependence on oil. The kingdom has also been scouting for deals abroad to transform itself into a global economic powerhouse.
Here are some of the key investments and deals announced since 2017 when Prince Mohammed launched the Future Investment Initiative to attract global investors:
2021
** February 2021: Saudi Arabian Military Industries (SAMI) signed an agreement to set up a joint venture with U.S. firm Lockheed Martin to enhance the kingdom’s defence and manufacturing capabilities.** February 2021: Warner Music Group said it invested in Rotana Music, the Middle East’s largest record label owned by Saudi Arabia’s billionaire Prince Alwaleed bin Talal. [L4N2KN1E7]2020** Q4 2020: The Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, invested $12.8 billion in U.S. equities as of the fourth quarter of last year, including Uber Technologies.** December 2020: Saudi Arabia was the 14th largest holder of U.S. Treasury securities, holding $136.4 billion worth. That is down 24% from December 2019, according to data from U.S. Treasury International Capital System.
** November 2020: the PIF invested around $1.3 billion to buy a 2.04% stake in India’s Reliance Retail Ventures Ltd, a unit of Reliance Industries.** July 2020: Air Products, ACWA Power and NEOM signed an agreement for a $5 billion green hydrogen-based ammonia production facility for export to global markets.** June 2020: PIF bought a 2.32% stake worth $1.5 billion in Reliance’s other company Jio Platforms, India’s leading digital services company.
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