#Update* PetroSaudi, 1Malaysia Devt in US$2.5b JV

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KUALA LUMPUR: Malaysia and Saudi Arabia have set up a US$2.5 billion joint-venture company (JVC) to spearhead the flow of foreign direct investments from the Middle East as well as make strategic investments in high-impact projects here.Under the plan, Malaysia  to provide US$1 billion and Saudi Arabia the other US$2.5 billion. The companies said in a joint statement on Wednesday, Sept 30 the JV company is the result of a partnership between the government's 1Malaysia Development Bhd (1MDB) and PetroSaudi International Ltd (PSI).

The JVC’s objective is to seek, explore, and participate in business and economic opportunities which will provide long-term sustainable economic development of Malaysia. It is expected to actively make investments in the renewable energy sector.

For PSI, this is its first in this region, reflecting Saudi Arabia's confidence in Malaysia and economic prospects here.

1MDB is wholly owned by the Malaysian Government of Malaysia and it was set up recently to spearhead initiatives for long-term sustainable economic development and draw FDI into the country.

PSI, based in Al-Khobar, Saudi Arabia, is mandated to carry out investments which can strengthen the relationships between the country and key countries worldwide.