Saudi Arabia, Malaysia ink project deals worth SAR 8 bln

Saudi Arabia and Malaysia have signed seven agreements worth over SAR 8 billion for investment across different sectors in the kingdom, the Saudi Ministry of Commerce and Investment said on its official Twitter account.
 

The deals will cover joint ventures and cooperation in industries like construction, oil and gas, public transport, and aerospace, the ministry said. 

The agreements were signed at the Malaysia-Saudi Arabia Business Forum, organized by the ministry on the sidelines of King Salman's visit to Malaysia.

Participants at the forum discussed boosting investments and exchanging expertise between both countries, the statement said.

During the forum, the Saudi Arabian General Investment (SAGIA) granted Malaysia’s Progressive Impact Corporation Berhad (PICORP) a license to operate water treatment plants and sewage and waste facilities.

King Salman is currently on a month-long Asian tour--which includes Malaysia, Indonesia, Japan and China—looking to promote investment opportunities in Saudi Arabia, including the sale of a stake in state-run Saudi Aramco. 

Aramco plans to float a 5 percent stake worth $100 billion in 2018, with a dual listing in Riyadh and a foreign venue. The kingdom is considering several locations for the initial public offering (IPO), including New York, London, and Toronto.

Asian bourses are also vying to attract the lucrative listing, expected to be the world’s biggest IPO.

Hong Kong’s exchange is working "very hard" to snag the IPO, Charles Li, the chief executive of Hong Kong Exchanges and Clearing (HKEX), told Reuters on Monday.

Meanwhile, Singapore is mulling incentives, including inviting one of its state investment companies to become a cornerstone investor in Aramco’s IPO, Bloomberg reported earlier this month.

Chinese lenders like the Industrial and Commercial Bank of China International and China International Capital Corporation are also reportedly pitching for an advisory role in the listing.