SoftBank Plans $25 Billion Investment in Saudi Arabia
Japanese telecom giant SoftBank Group Corp. seemed to have bolstered its investment relationship further in Saudi Arabia, as it was revealed on Thursday that it is planning to invest in the country.
According to people familiar with the matter, they stated that the Tokyo-based internet corporation will be investing up to $25 billion in Saudi Arabia for the next three to four years.
SoftBank also plans to use $15 billion of that proposed funding in the new high-tech mega city of NEOM that the country’s Crown Prince Mohammed bin Salman is planning to build, which will be connecting Egypt and the rest of Africa.
The project is also backed by a $500 billion funding from the government, its sovereign wealth fund and international investors.
A spokesman for SoftBank refused to comment on the subject.
SoftBank and Saudi Arabia Aiming to Diversify
The multinational telecom corporation has been strengthening its relationship with the country ever since it raised a total of $45 billion from the Saudi Arabia’s Public Investment Fund for a $100 billion fund earlier this year.
The firm’s investment is likely to support the kingdom’s push to expand its economy away from oil, as well as help strengthen its campaign on cracking down alleged corruption that has stunned investors.
Meanwhile for SoftBank, the investment came as it tries to diversify from tech investments to asset management.
The company has been using its cash to invest on almost everything, including semiconductor-design, software, and co-working business.
SoftBank is now looking for further acquisitions in the financial sector, as part of its plan to set up a $300 billion asset management subsidiary that would also hold its $93 billion Vision Fund for tech investments.
Vision Fund raised the $93 billion in May. SoftBank’s chief executive Masayoshi Son said that the initiative would be used to help set the foundations for the company’s future.
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