Saudi Arabia and Softbank Announce $100 Billion Technology Fund

Saudi Arabia and Japan’s Softbank announced that they will create a tech fund that could soon grow to around $100 billion- the largest in the world. This new private equity investment fund, called the Softbank Vision Fund, will be managed in Britain by a Softbank subsidiary. Softbank is rumored to invest at least $25 billion, while Saudi Arabia may invest up to $45 billion in the next 5 years- a telling sign of their initiative to move into non-oil industries.

This move is an ambitious one, both for Softbank and Saudi Arabia. Softbank is known for its investments in relatively successful companies, such as its early backing of Alibaba, a giant in the field of Chinese online marketing, and ARM, the chip manufacturer for many brands of smartphones. Saudi Arabia has also been looking to expand its financial portfolio beyond oil; in June, it invested $3.5 billion into Uber, becoming one of Silicon Valley’s most valued investors. According to Prince Mohammed bin Salem, the move will support “the kingdom’s Vision 2030 strategy to develop a diversified economy.”

References: https://www.ft.com/content/0370a5f4-9191-11e6-8df8-d3778b55a923

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s