Saudi Arabia and China plan to establish and operate jointly a $20 billion investment fund, Saudi Minister of Energy, Industry and Mineral Resources Khalid Al-Falih has been quoted as saying by Reuters.

Al-Falih was speaking on the sidelines of an economic conference of senior officials and businessmen from the two countries, the report said.

On Tuesday, Saudi Arabia's Cabinet authorised the minister, or his deputy, to discuss with the Chinese side a draft memorandum of understanding between the kingdom and China on the establishment of a joint investment fund.

The two countries will share the costs and profits of the fund on a 50:50 basis, Al-Falih said in the report.

Al-Falih said in addition to the fund, he expected 11 business agreements worth about $20 billion to be signed between the two sides on Thursday.

The Cabinet also approved the authorisation of the Minister of Justice or his deputy to discuss with the Chinese side a draft judicial cooperation agreement between Saudi Arabia and China, a Saudi Press Agency report said.