RDIF attracts major investment from the Middle East into the Russian economy: Saudi Arabia’s sovereign wealth fund to commit USD 10 bn
Press release, 07.07.2015
Moscow, July 7, 2015 - The Russian Direct Investment Fund (RDIF) and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), have announced a partnership to invest in attractive projects in Russia, in areas including infrastructure and agriculture. The parties are looking at projects that will strengthen trade, economic and investment co-operation between the two countries.
Under the agreement, PIF will invest $10bn in the partnership. The agreement was signed during the visit of the Deputy Crown Prince and Defense Minister of Saudi Arabia, Mohammad bin Salman Al Saud, to Russia during SPIEF and his private meeting with Russian President Vladimir Putin. It also follows Mohammad bin Salman Al Saud’s attendance at the Russian President’s traditional meeting with the members of the RDIF’s International Advisory Board, which took place on June 18.
At that time, RDIF also signed a partnership agreement with another Saudi Arabian sovereign wealth fund, the Saudi Arabian General Investment Authority (SAGIA). The parties will identify attractive joint investment opportunities.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“We are delighted to welcome our new partners, PIF and SAGIA, which have chosen to partner with RDIF on their first investments in Russia. This investment of $10bn will significantly strengthen economic and investment ties between Russia and Saudi Arabia.”
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The Public Investment Fund of Saudi Arabia was set up by royal decree in 1991 to promote the development of the Saudi Arabian economy. The Fund’s initial task was to provide financial support to commercial production projects of strategic significance for the economy but beyond the investment capacity of private investors due to lack of finances or experience. PIF has invested in a number of strategic sectors of the Kingdom’s economy, including: oil refining, construction of pipelines and oil tanks, transport, including by air and by sea, water desalination, extraction of minerals, infrastructure, and other strategically important private investor projects.
The Saudi Arabian General Investment Authority was set up by the Government of Saudi Arabia in 2000 as part of the formalisation of the Kingdom’s economic liberalisation. The Fund is responsible for managing Saudi Arabia’s investment climate. Its main task is to drive economic growth by fostering favourable conditions for business, providing investment services to investors, and investing in key sectors of the economy, including power, transport, IT and other science-related sectors.
Russian Direct Investment Fund (RDIF) was established in 2011 to make equity co-investments, primarily in Russia alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. Further information at www.rdif.ru
Russian Direct Investment Fund
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