Beijing-based multilateral financial insititution Asian Infrastructure Investment Bank (AIIB) and Saudi Arabia have signed an agreement to jointly establish a strategic investment programme aimed at mobilising long-term financing into sustainable infrastructure projects.

The joint declaration of intent was signed at the Conference for Emerging Market Economies in Al-Ula, Saudi Arabia.

The focus will be on six sectors, namely power generation and transmission, sustainable transport, water supply, sanitation, urban development, and renewable energy with storage projects in the Kingdom and the region, according to an AIIB press statement.

The statement said the agreement represents a key step toward developing a multi-year rolling programme and establishes a pathway for expanding AIIB's non-sovereign-backed operations through public-private partnerships (PPP).

Each party will designate a focal point to coordinate engagement with key stakeholders, ensuring the investment pipeline remains aligned with evolving infrastructure priorities through regular semi-annual reviews, the statement noted.

In September 2023, AIIB had opened its first overseas office in Abu Dhabi.

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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