Recap: Investment highlights of King Salman’s Asia tour

King Salman earlier this week completed his month-long tour of key Asian countries in an attempt to boost relationship and explore investment opportunities. The king, his ministers and the 1,500-strong entourage visited Malaysia, Indonesia, Japan and China – with a brief halt in Brunei.

Argaam has compiled a list of potential deals that were struck with the Asian countries during the trip.

Malaysia

The two countries are said to have signed four memoranda of understanding (MoU) and seven agreements, which are reportedly worth over SAR 8 billion for investment across different sectors in the kingdom.

State-owned Saudi Arabian Oil Company (Saudi Aramco) announced that it was planning to invest $7 billion in an oil refinery that will be built by Petroliam Nasional Bhd (Petronas) in Johor, Malaysia.

Indonesia

At least 11 pacts were signed during the King’s visit. Both countries agreed that the Saudi Fund for Development would help finance several development projects in Indonesia.

MoUs were signed in the fields of small and medium enterprises, healthcare services, air cargo and freight, and fish resources.

The $6 billion refinery joint venture agreement between Saudi Aramco and Indonesian oil company Pertamina in Cilacap in central Java was affirmed.

Saudi Arabia also committed to provide Indonesia with $1 billion of financing for economic development and cooperation to combat crime.

Brunei

Saudi Arabia inked a bilateral agreement in the fields of economy, investment, education, culture, youth and sports.

Japan 

King Salman and Japan’s Prime Minister Shinzo Abe signed three MoUs in various fields as part of the countries’ plans to strengthen cooperation.

The two sides also agreed to regulate visa issuance for Saudi and Japanese nationals.

Saudi Arabia’s National Industrial Cluster Development Program signed an agreement with Japanese carmaker Toyota to study the feasibility of building a factory to manufacture vehicles and parts in the kingdom.

The King is said to have met SoftBank Group Corp’s chairman Masayoshi Son to discuss plans for a $100 billion technology-investment fund.

The Saudi Stock Exchange (Tadawul) signed a MoU with Japan Exchange Group to exchange information and enhance market development.

King Salman has also told Prime Minister Abe that he will consider Japan’s request to host Saudi Aramco’s upcoming $100 billion listing.

China

China and Saudi Arabia signed 14 MoUs and letters of intent potentially worth about $65 billion during King Salman's visit to Beijing. The agreements cover a wide range of areas – including energy, culture, education, and technology – and involve 35 projects.

Discussions also include a plan for the kingdom to participate in China’s Chang’e-4 moon mission and a partnership agreement for manufacturing drones, Saudi Press Agency (SPA) reported.

A total of 21 investment accords were signed between private sector firms of the two countries at the Saudi-Chinese investment forum. The accords are related to energy, petrochemicals, contracting, IT, refinery and marketing.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com