RIYADH — The Public Investment Fund (PIF) and the Hong Kong Monetary Authority (HKMA) signed a memorandum of understanding (MoU) to jointly establish a new investment fund with a target size of $1 billion.

The agreement was formalized on Thursday during the 8th Edition of the Future Investment Initiative (FII) in Riyadh.

The MoU aims to explore investments in manufacturing, renewables, fintech, and healthcare, supporting the localization of companies connected to Hong Kong and the Greater Bay Area in Saudi Arabia.

This collaboration is expected to create highly skilled local jobs and drive economic growth by fostering regional leaders in these sectors. Additionally, it reinforces Hong Kong’s status as a leading global financial hub, leveraging its skilled workforce, efficient financial infrastructure, and deep liquidity.

The signing marks a significant milestone in strengthening the economic ties between PIF and HKMA.

The proposed fund aligns with PIF’s strategic focus on economic diversification and sustainability, further cementing its role in shaping Saudi Arabia's future economic landscape.

This partnership has the potential to drive shared prosperity by investing in key industries that will define future economies. It combines HKMA’s long-term investment expertise with PIF’s strategic vision for growth in the target sectors.

The fund will also promote foreign direct investment through Hong Kong, providing a platform for businesses to expand internationally and access promising investment opportunities in Saudi Arabia. — SG