Japan’s Softbank Group and Saudi Arabia agreed to create a high-tech investment fund which capital could total as much as $100 billion. All collected means will be allocated to organization of the world’s largest direct investment fund.
The move is a part of the kingdom’s business policy that was recently changed sharply because of a decrease in the country’s financial reserves amid falling crude prices. Saudi Arabia plans to increase investments to non-oil industries in an attempt to re-focus its economy. Softbank CEO Masayoshi Son is keen to explore other sectors and boost the bank’s influence. Saudi Arabia's top sovereign wealth fund may put in up to $45 billion over the next five years while SoftBank expects to invest at least $25 billion, according to a statement made by the Japanese bank.
Besides, some other investors may join the bank creation. Third-party participation could increase the fund capital to $100 billion. However, these investors have not been named yet. The Softbank CEO said that the fund will help raise investments in technological companies all over the world and the fund itself could become the largest investor. The fund will be managed by a Softbank subsidiary situated in Britain.
