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UAE to Invest $10 Bln in Indonesia's Sovereign Wealth Fund

A night view of Jakarta. (AFP file photo)
A night view of Jakarta. (AFP file photo)
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UAE to Invest $10 Bln in Indonesia's Sovereign Wealth Fund

A night view of Jakarta. (AFP file photo)
A night view of Jakarta. (AFP file photo)

The United Arab Emirates will invest $10 billion in Indonesia's new sovereign wealth fund to be spent on projects inside Southeast Asia's biggest economy, the UAE state news agency reported on Tuesday.

This marks the biggest foreign investment commitment for the Indonesia Investment Authority (INA) and the first since its February launch.

Authorities have previously said the INA had also received commitments of up to $10 billion prior to its launch, from global companies and agencies, such as the US International Development Finance Corporation and Japan Bank for International Cooperation, and some foreign pension funds.

Jakarta will seed the fund with $5 billion in cash and other assets. Unlike many other sovereign wealth funds, which manage excess oil revenues or foreign exchange reserves, the INA seeks foreign funds as co-investors to finance the country's economic development and aid pandemic recovery.

The UAE investment will be used for infrastructure projects, including roads and ports, and also tourism, agriculture and other "strategic sectors", the state news agency WAM reported.

The time frame of the investment was not immediately clear.

Indonesia welcomed the announcement and said it should "help narrow the gap between the domestic funding capacity and the need for development programs," a spokesman for the country's coordinating ministry of maritime affairs and investment said.

Indonesian officials have said the INA will give opportunities for foreign investors with different types of risk profile, while also helping state companies, whose balance sheets have been under strain due to large investments in infrastructure, deleverage through asset recycling.

Fitch Ratings said on Monday the launch of the INA is unlikely to reduce those companies' debt levels in the short term, but Indonesia's capacity to mobilize funds may be amplified if the fund is able to channel overseas capital into infrastructure.

However, it expected such mobilization to materialize in the longer term after the INA develops a record of funding and managing projects.

The INA has been reviewing investment opportunities at dozens of toll road concessions worth $2.6 billion, among other projects, officials said.

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Saudi Minister of Industry: Geological Survey Authority to Play Key Role in Mining Over Next 25 Years

Prince Saud and the Minister of Industry during the Authority's ceremony. (Makkah Region)
Prince Saud and the Minister of Industry during the Authority's ceremony. (Makkah Region)
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Saudi Minister of Industry: Geological Survey Authority to Play Key Role in Mining Over Next 25 Years

Prince Saud and the Minister of Industry during the Authority's ceremony. (Makkah Region)
Prince Saud and the Minister of Industry during the Authority's ceremony. (Makkah Region)

Saudi Arabia’s Geological Survey Authority plays a vital role in uncovering the earth’s reserves of metals such as gold, zinc, and copper. According to Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef, this role is set to expand significantly in the next 25 years as the Authority becomes central to advancing the mining sector.

Alkhorayef emphasized the commitment to continuing geological survey and exploration projects, providing critical data to investors. He highlighted initiatives launched by the Authority to transform the mining sector into the third pillar of the national economy.

The minister was speaking during a ceremony celebrating the 25th anniversary of the Saudi Geological Survey Authority. The event, held under the patronage of Prince Khalid Al-Faisal, Advisor to the Custodian of the Two Holy Mosques and Governor of the Makkah Province, was inaugurated by Prince Saud bin Mishaal bin Abdulaziz, Deputy Governor of the region, in the presence of senior officials and distinguished guests.

In an interview with Asharq Al-Awsat, Alkhorayef noted the significant influx of investment in Saudi Arabia’s mining sector.

“There is now a large number of investment applications in the mining sector. We are collaborating with other government entities to ensure site allocations for investors,” he said.

He added that new agreements are being signed daily, both for expansions by existing investors and for new entrants to the sector.

The data obtained from geological surveys and the Authority’s digital platform has positioned Saudi Arabia as a prime destination for mining investments,’ he stressed.

“The results we achieve through geological surveys and accurate data collection make Saudi Arabia a key focus for companies seeking to expand in the mining sector to secure future resource supplies,” added Alkhorayef.

He also underscored efforts to verify data through additional sampling and by concentrating on areas with the richest deposits, which enhances the credibility of Saudi mining data globally.

Saudi Arabia has implemented extensive geological survey projects, covering over 85% of the country’s territory through advanced geophysical and geochemical techniques.

Alkhorayef highlighted the General Geological Survey Program and the initiative to build a National Geological Data Repository. These efforts have increased the estimated value of the Kingdom’s untapped mineral resources from SAR 4.9 trillion in 2016 to SAR 9.4 trillion at the beginning of 2024.

At the ceremony, the Deputy Governor of Makkah Province unveiled the Saudi Geological Survey Authority’s new logo, reflecting its geological identity and ongoing efforts to map the Kingdom’s resources while promoting cultural and environmental awareness. The event also included recognition for the Authority’s founding committee members and ceremony sponsors.

Alkhorayef noted that the Authority has completed more than 500 specialized projects across various earth science fields. These include geological mapping at various scales, mineral exploration, geophysical, geochemical, and marine surveys, geological hazard monitoring and mitigation, and mining research and studies.

He pointed to the Authority’s emphasis on developing its human resources, recognizing that their dedication and expertise have been pivotal to its success and to earning widespread acclaim for its accomplishments.

In his remarks marking the Authority’s 25th anniversary, Alkhorayef acknowledged the significant national efforts in exploring mineral wealth over the past quarter-century.

These efforts have led to major discoveries that have positively impacted multiple sectors, he said, adding that discoveries of key minerals like phosphate, potassium, gold, and silver, as well as strategic mineral reserves, have bolstered investments and spurred the growth of the mining sector.