Foreign Investment Initiative Results in Series of International Agreements
Saudi Arabia signed an estimated 25 memoranda of understanding (MOU) worth an approximately $56 billion during the recent Foreign Investment Initiative (FII). While many international investors participated in the event, U.S. firms accounted for the majority of these agreements. Saudi Aramco played a leading role, signing agreements with 15 international partners worth more than $34 billion. These included MOUs with Baker Hughes, Schlumberger, and Halliburton. In addition, Saudi Aramco signed agreements with Flex-Steel to invest in a reinforced thermoplastic pipe facility; Air Products for a Jizan Refinery; and NOV to invest in a manufacturing of onshore rigs. Other agreements were signed with Norinco (China), Total (France), Hyundai (South Korea), NPCC (U.A.E.), and GumPro (India).
Construction and infrastructure also constituted a large share of the FII agreements, valued at an estimated $4.4 billion. U.S.-based Katerra signed an agreement with the Saudi Ministry of Housing’s Eskan Program to introduce modern and rapid construction methods to Saudi Arabia. Additionally, $3.8 billion of construction deals went to Chinese companies to build 26,500 homes in the Kingdom. Companies included PowerChina International Group and Sany-Alameriah, a Saudi-Chinese partnership.