Saudi Arabia's Kingdom Holding Company, the investment firm owned by billionaire Prince Alwaleed bin Talal, has joined hands with French group Caisse des Dépôts International Capital (CDCIC) to set up a $400 million fund.

The investment vehicle will be be jointly managed by the two companies, said Prince Alwaleed after signing the agreement on Friday.

As per the deal, both KHC and CDCIC will each contribute SR375 million ($100 million) to the Fund. As a later step, third party investors will be invited to invest a total amount of SR1.125 million ($300 million), said a statement from KHC.

The French sovereign wealth fund has already committed to contribute SR375 million ($100 million) for such second round. After both rounds the total value of the fund will be SR1.5 billion ($400 million), it stated.

The investment strategy of the investment fund will be to seek attractive investment opportunities in small and medium size enterprises in Saudi Arabia with the participation of large French corporates, in addition to diversifying KHC’s investment portfolio.  

This partnership between KHC and CDCIC reflects the strong economic ties between Saudi Arabia and France. Furthermore, the deal affirms to Saudi Arabia’s sound economy and KHC’s strong position as a global investment company, the statement added.

Founded in 1980, KHC is a publicly traded company listed on the Saudi Stock Exchange (Tadawul) and has a diversified business organization in the field of investments and recognized as an elite player in the Gulf region and internationally.

It portfolio of investments include luxury hotels management companies, real estate, petrochemical, media and publishing, entertainment, education, healthcare, services projects, aviation and agriculture.- TradeArabia News Service