The Kingdom of Saudi Arabia has signed a memorandum of understanding with SoftBank for a $200 billion solar power project; expected to be the single largest of its kind in the world. Masayoshi Son, Founder of SoftBank, said that he envisions the project, which runs the gamut from power generation to panel and equipment manufacturing, as a way to help wean Saudi Arabia off its dependence on oil for electricity, create as many as 100,000 jobs, and shave $40bn off power costs. The total capacity to be built under its umbrella will be 200 gigawatts by 2030.
“The kingdom has great sunshine, great size of available land and great engineers, great labor, but most importantly, the best and greatest vision.” He added. Saudi Arabia’s Crown Prince Mohammed Bin Salman said “It’s a huge step in human history. It’s bold, risky and we hope we succeed doing that.”
The kingdom’s deal-making has quickened. Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, which has more than $224bn in assets, spent about $54bn on investments last year. The sale of about a 5% stake in oil giant Aramco is expected to provide more funds for investments.
According to the National, Prince Mohammed last week met US President Donald Trump at the White House. The US and Saudi Arabia are developing a close partnership, encompassing everything from isolating Iran to bolstering business ties beyond energy into technology, defense, and entertainment.