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Saudi Arabia is looking to strengthen ties with Japanese companies as it pushes to attract more foreign investment and diversify its economy. The Public Investment Fund (PIF) says it wants Japan to regain its earlier role as a key partner and hopes to see more Japanese firms involved in upcoming national projects. The PIF is also shifting its strategy, moving away from mega real estate developments like NEOM and The Line. Instead, it will focus on logistics, mining, religious tourism infrastructure and artificial intelligence. The fund invested about USD 11.5 billion in Japan between 2017 and 2024 and expects this to reach USD 27 billion by 2030.
Saudi Arabia recently signalled that it is seeking deeper engagement with Japanese companies as the kingdom intensifies efforts to draw foreign investment to support its economic diversification agenda. The governor of the Public Investment Fund (PIF) conveyed that the country is intent on reviving Japan's former role as one of its most prominent partners by encouraging a larger presence of Japanese firms in forthcoming projects. Advertisement
According to information reported in the past week, the kingdom is preparing to alter the direction of its nearly USD 925 billion sovereign wealth fund. The PIF intends to move away from large-scale real estate ventures, which have largely shaped development priorities over the past decade under programmes such as NEOM and The Line. Instead, the fund's revised strategy will place emphasis on sectors considered central to long-term national growth, including logistics, mining and mineral exploitation, religious tourism infrastructure, and artificial intelligence.
The governor explained that between 2017 and 2024, the PIF invested roughly USD 11.5 billion in Japan, and he indicated that the fund expected this total to rise to about USD 27 billion by 2030. He noted that the kingdom is keen for Japanese companies to expand their participation in Saudi projects as the country accelerates its Vision 2030 diversification objectives.
He added that the PIF's updated five-year roadmap, which stretches to 2030, had recently received board approval. The remarks were delivered at the Future Investment Initiative Priority summit held in Tokyo, reflecting the fund's increasing engagement with Asian markets to broaden its strategic investment base.
Source - Reuters
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