JBIC Renews MOU with PIF
Supporting Business Expansion of PIF and Japanese Companies for Realizing Decarbonized Society

• Region: The Middle East
• Infrastructures
• Environment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) renewed on October 29 a Memorandum of Understanding (MOU) with the Public Investment Fund (PIF; Governor: H.E. Yasir Othman Al-Rumayyan) to strengthen a partnership between the two organizations^*1, taking the opportunity of the 8th Edition of the Future Investment Initiative (FII)^*2 held in Riyadh, the Kingdom of Saudi Arabia (Saudi Arabia or KSA).
     
2. PIF is Saudi Arabia’s sovereign wealth fund. It plays a leading role in advancing Saudi Arabia’s economic transformation and diversification, and it continues to invest globally. The purpose of the MOU is to promote PIF and Japanese companies’ collaborative projects in Saudi Arabia and third countries by strengthening the cooperation between JBIC and PIF and its portfolio companies in a variety of sectors, such as decarbonization, digital transformation, and smart city development, which are global opportunities.
     
3. At the G20 summit hosted by Saudi Arabia in 2020, the government of Saudi Arabia advocated promoting a Carbon Circular Economy, and in October 2021, it also announced its aim of achieving net-zero carbon emissions by 2060. In addition, it aims to increase the proportion of renewable energy in the country's energy mix to 50% by 2030 under Vision 2030, an economic transformation plan for Saudi Arabia conceived in 2016. These demonstrate the commitment of Saudi Arabia to reducing the country’s dependence on oil sales, diversifying the economy, and transitioning to renewable energy. In July 2023, when the former prime minister of Japan, KISHIDA Fumio, visited Saudi Arabia, the two countries announced their plan to establish the KSA-Japan Lighthouse Initiative for Clean Energy Cooperation, which is expected to promote clean energy projects with the participation of leading companies from both countries. Strengthening the relationship between JBIC and PIF through this MOU will contribute toward the creation of business opportunities for Japanese companies in the clean energy sector and protect the global environment. Furthermore, JBIC has also signed an MOU with the Ministry of Finance and the National Debt Management Center (NDMC) in December 2023 and renewed an MOU with Saudi Electricity Company (SEC) in April 2024 to strengthen the partnerships between the parties^*3.
     
4. As Japan’s policy-based financial institution, JBIC will continue to provide financial support to create business opportunities and promote business for Japanese companies in a variety of sectors and will work closely with foreign governments and governmental agencies to address global climate change and resolve social issues.
     

Note

1. *1 
   JBIC signed a MOU with PIF in February 2022. See press release on February 25, 2022.
2. *2 
   It is an annual international conference held by the non-profit foundation, Future Investment Initiative (FII) Institute, which brings together leaders, visionaries, and innovators from around the world to explore the future of global investment. PIF is involved in the FII Institute as a founding partner.
3. *3 
   See Press Releases on December 26, 2023 and April 30, 2024, respectively.