Saudi Arabia, SoftBank ink deal on $200 billion solar project

Saudi Arabia, SoftBank ink deal on $200 billion solar project

Saudi Arabia, SoftBank ink deal on $200 billion solar project

The Softbank Vision Fund will begin a major investment partnership with Saudi Arabia that could see 200GW of solar generation capacity installed.

The project is expected to have the capacity to produce up to 200 gigawatts (GW) by 2030, SoftBank Chief Executive Masayoshi Son told reporters in NY. The remainder will come from loans to be paid off via revenue that is generated through selling electricity that the huge solar project produces, said Son. Mohammed is now touring the United States in an effort to woo foreign investment in the kingdom as part of his effort to transform and diversify the economy there.

The Saudi crown prince has been trying to wean the country off its addiction to oil and diversify the economy into new areas.

The ample sunshine and land and Saudi Arabia's pool of engineers and skilled workers make the foray into solar there lucrative, Son said. He predicted that the project would add as much as $12 billion to the gross national product of Saudi Arabia. Son said that it has signed a memorandum of understanding on Tuesday evening to build a $200 billion biggest solar power project in Saudi Arabia.

Masayoshi Son, Softbank's CEO, announced the agreement with Saudi crown prince Mohammed bin Salman to create a 200 gigawatt solar initiative in the sun-drenched oil producer by 2030.

"Importantly, these projects will help create up to 100,000 direct and indirect jobs in the Kingdom". The 32-year-old king-in-waiting and a Saudi delegation are cementing ties with the Trump administration and lining up American investors as the kingdom embarks upon an ambitious plan to diversify its economy.

Saudi Crown Prince Mohammed Bin Salman is on a three-week tour of the U.S., his first visit since being designated the successor of his father, King Salman bin Abdulaziz. The kingdom's sovereign wealth fund has reportedly committed $45 billion to the massive technology investment vehicle, which counts Uber, Nvidia and WeWork among its largest investments. Out of this, about $15 billion could be potentially invested in Neom-a futuristic project that Saudi Arabia plans to erect on the Red Sea Coast. The fund is now closed.

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