Tech

SoftBank, Saudi Arabia's PIF Team Up For $100 Billion Tech Fund

By Luis Fran , Oct 14, 2016 04:13 PM EDT

The Saudi Arabia Public Investment Fund (PIF) and Japan´s SoftBank Group are creating a new global tech investment fund that could grow as large as $100 billion, making it one of the largest in the entire world. The fund will be based in London with a working title of the "Softbank Vision Fund," and could be the biggest investor in the technology sector over the next decade.

Other Investors To Be Part Of The $100 Billion Fund

According to the International Business Times, SoftBank is set to invest at least $25 million in the next 5 years and Saudi Arabia PIF will be investing $45 million in the same period, while the remaining account would come from some large global investors who also want to be part of this lucrative deal.

Apparently, the reason behind this move is Saudi Arabia´s intentions to make millionaires' business into non-oil industries, considering the problems that its economy is having due to low oil prices. SoftBank, for its part, seeks to become a global tech leader.

"With the establishment of the SoftBank Vision Fund, we will be able to step up investments in technology companies globally. Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector. We will further accelerate the Information Revolution by contributing to its development," SoftBank Group Chairman Masayoshi Son said in a statement.

SoftBank And Saudi Arabia PIF Are Natural Partners

The Japanese company has been diversifying its own investment in the last years, acquiring web services such as Alibaba and Yahoo! Japan, in addition to the U.K. semiconductor firm ARM Holdings last month. Saudi Arabia PIF also made its move earlier this year, investing $3.5 billion in U.S. ride-hailing firm Uber, which was a total surprise for everyone.

According to Reuters, this project will be led for SoftBank by Rajeev Misra, the group's head of strategic finance. The two nations are natural partners in their ambitions, and its investment might represent a huge step forward for technology and business.

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