A major Saudi investment fund will invest $1.1 billion in Israel to boost economic ties
Two major Saudi Arabian investments companies announced Tuesday that they would invest $200 million each in Israel and boost trade ties.
The investments, which will be part of a broader Saudi Arabia-Israel investment strategy, will boost Israel’s economic growth and support economic and social development in the country, according to the companies’ websites.
The investment will be made through a Saudi Arabian fund that has already been formed to support Israeli companies and enterprises.
Saudi Arabia, the world’s largest oil exporter, is also the largest investor in Israel’s construction sector.
Its investment into Israel is one of the most significant in recent years.
The Saudi investment will boost economic growth in Israel by $1 billion, according the companies websites.
The investment will come at a time when Saudi Arabia’s economy is struggling with high unemployment and a slowdown in economic activity, especially in the oil-producing Arab states of the Gulf Cooperation Council, according for the Saudi-owned Al-Arabiya television channel.
The companies said the investment will support Israel’s economy and support social and economic development in Israel.
Al-Arabia said the investments will support the construction of 2,000 housing units and 2,500 jobs, as well as the construction and maintenance of infrastructure in Israel as well.
Saudi investment in Israel has increased over the past two years, as the kingdom has expanded its influence in the Middle East region, including in the war-torn Syria, where it helped prop up President Bashar Assad against the opposition, and in Yemen, where the kingdom and its ally Saudi Arabia have been bombing the country’s Houthi rebels.
The two companies also said they will invest in several Israeli agricultural projects, including a $600 million project that will create jobs in Israel through agriculture training and a $500 million project to help farmers who face high unemployment.
Saudi officials have said that the kingdom’s economic ties with Israel are growing because of the Saudi government’s efforts to diversify its economy away from dependence on oil revenue.