(Bloomberg) -- Saudi Arabia's new $100 billion investment firm announced a string of deals Tuesday, including a partnership with SoftBank Group Corp., aimed at transforming the kingdom into an industrial and manufacturing powerhouse.
The new vehicle, Alat, and SoftBank will invest up to $150 million to establish a fully-automated manufacturing and engineering hub in Riyadh, according to a statement. The venture will build industrial robots based on intellectual property developed by SoftBank and its affiliates, with the first factory set to open in December.
“With this initial set-up, we predict a contribution of $1 billion to Saudi Arabia's GDP by 2025,” Alat Chief Executive Officer Amit Midha said in the statement. “Our ambition is to fundamentally transform industrial manufacturing by robots, manufactured in the kingdom.”
Chaired by Crown Prince Mohammed bin Salman and backed by the Public Investment Fund, Alat was created to sign deals with international players and invest in large industrial firms that the kingdom wants to see set up operations locally. The firm plans to invest $100 billion by 2030.
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“Today's announcement marks a historic milestone for how future manufacturing will take place,” SoftBank Chairman Masayoshi Son said. The PIF has a longstanding relationship with SoftBank and committed $45 billion to the Vision Fund.
On Monday, Alat unveiled other deals, including one with Carrier Corp. to set up a manufacturing facility in the kingdom that will create more than 5,000 jobs locally. The firm has also tied up with Dahua Technology Ltd., which will start manufacturing technology products in the region.
The moves underscore Saudi Arabia's commitment to transform itself from an oil-dependent economy to a powerhouse that makes money on everything from tech to metals, mining and tourism. The latest deals come just a month after a government minister said the PIF is looking at making a “sizable investment” into the semiconductor industry.
Read More: Saudis Eye Big Investment to Kick Off Foray Into Semiconductors
Another key ambition for Saudi is to develop an auto manufacturing hub on the West Coast. US EV-maker Lucid Group Inc. is already assembling cars there and is set to be joined by Hyundai Motor Co. and Ceer, a brand created by the PIF. Plans for the hub involve developing downstream industries, including by making chips and batteries.
The wealth fund, key to the kingdom's Vision 2030 plan, has rapidly amassed $700 billion in assets and aims to control $1 trillion in 2025.
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