Joint Press Statement
PETROSAUDI INTERNATIONAL LIMITED AND 1MALAYSIA DEVELOPMENT BERHAD IN US$2.5 BILLION JOINT-VENTURE PARTNERSHIP, OPENS NEW DOOR TO FDIS
KUALA LUMPUR, 30 September 2009: Malaysia and Saudi Arabia today entered a new era of economic cooperation with the setting up of a US$2.5 billion joint-venture company, which will spearhead the flow of foreign direct investments from the Middle East as well as make strategic investments in high-impact projects here.
The joint-venture company ("JVC") is the result of a partnership between 1Malaysia Development Berhad ("1MDB") and PetroSaudi International Limited ("PSI"). This venture is the first undertaken by PSI in this region and underscores the confidence Saudi Arabia has in Malaysia and economic prospects here.
1MDB is wholly owned by the Government of Malaysia and was established recently to drive strategic initiatives for long-term sustainable economic development and promote inflow of FDI into the country.
PSI, based in Al-Khobar, Saudi Arabia, is a private company mandated to carry out investments which can strengthen the relationships between the Kingdom of Saudi Arabia and key countries worldwide.
The JVC's objective is to seek, explore, and participate in business and economic opportunities which result in the enhancement and promotion of the future prosperity and long-term sustainable economic development of Malaysia. It is expected to actively make investments in the renewable energy sector.
The JVC is also expected to be a vehicle for investments from the Middle East into the region, thereby giving Malaysia the edge in drawing investments from the cash- and resource-rich region.
PSI Chief Executive Officer Sheikh Tarek bin Essam bin Ahmad Obaid said: "Malaysia has long been a model of stability and development for developing countries. We believe that recent economic liberalisation policies announced by the Prime Minister will only make Malaysia a more attractive place for investors. We envisage Malaysia becoming an important partner for the Kingdom of Saudi Arabia."
Also lauding the setting up of the JVC was 1MDB Chief Executive Officer Shahrol Halmi. He said: "The JVC is set to further increase foreign direct investment from the Middle East, in particular Saudi Arabia. We will leverage on PSI's strong international presence, their networks and expertise to promote Malaysia as the preferred investment destination."
The JVC will initiate various projects in multiple sectors which are mutually beneficial as well as in line with 1MDB's mission to drive long-term sustainable economic development in Malaysia.