Saudi Arabia’s Public Investment Fund (PIF) has signed six agreements totaling $50 billion with leading Chinese financial institutions, marking a significant step in strengthening economic ties between the two nations.

The MoUs, signed with major Chinese banks and financial corporations, encompass a broad spectrum of financial cooperation, including boosting capital flows through debt and equity investments.

“The MoUs demonstrate PIF’s strong and deepening relationships with leading financial institutions and accentuate PIF’s commitment to enhancing partnerships globally,” said Fahad Al-Saif, head of the Global Capital Finance Division and the Investment Strategy and Economic Insights Division at PIF.

As part of its Vision 2030 initiative, Saudi Arabia is actively diversifying its economy away from oil dependence. The PIF has emerged as a key player in this transformation, investing across various sectors.

In July, China expressed keen interest in deepening economic cooperation with Saudi Arabia, particularly in infrastructure, energy, and technology. China also welcomed Saudi entities, including sovereign wealth funds and oil giant Aramco, to further establish their presence in the country.

As part of Saudi Arabia’s efforts to strengthen economic ties with China, PIF-backed Riyadh Air signed an agreement with China Eastern Airlines in June 2024 to enhance connectivity and collaborate on digital transformation.

Additionally, the Saudi wealth fund has formed strategic partnerships with Singapore Airlines and Air China. These partnerships focus on interline connectivity, codeshare arrangements, and collaborations in frequent flyer programs, cargo services, customer experience, and digital innovation.

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