Advancement in Economic Relations between Russia and Saudi Arabia
Implementation of the Russian Direct Investment Fund in Saudi Arabia is on its way to greatly improving the two nations’ bilateral relations. Khalid- al- Falih, the Saudi Minister of Energy, Industry, and Mineral Resources, discussed the investment in an effusive manner: “As an energy minister of Saudi Arabia I can say that RDIF is an important bridge between Russia and Saudi Arabia.”
He indicated the vital role pursued by measures such as RDIF and the Public Investment Fund of Saudi Arabia in ensuring a strengthened economic and business relationship between companies of both the nations. Company collaboration will lead to investment deals, and the ensuing decrease in the costs of acquiring information will invariably lead to a decline in risky investments.
As of now, it has been notified that the combined effort of RDIF and PIF will lead to investments totaling over $1.5 billion in areas such as petrochemicals, energy, logistics and transport, infrastructure, retail, industrial production, and real estate.
Such a boost in investment and company collaboration is expected to result in stronger trade relations between the two nations as well.
Furthermore, the investment enhancement will also have positive effects on Saudi Arabia’s economic obligation to allocate $1.5 billion for the reconstruction of Iraq, as the latter is estimated to need more that $88 billion to recover from the devastating conflict with Daesh.