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Apple invests a billion in Saudi based scheme

by on05 January 2017


Getting political

Fruity tax-dodging cargo-cult Apple is sticking a billion dollars in a tech fund being set up with Softbank to put billions into Saudi Arabia's Public Investment Fund (PIF).

Apple thinks it is a wise investment claiming it will speed the development of technologies which may be strategically important to Apple.

SoftBank has said it is investing at least $25 billion in the fund and has been in talks for an investment that could be as much as $45 billion.

SoftBank has also said that it plans to make future large-scale investments via the tech fund, rather than on its own. Foxconn, Oracle founder Larry Ellison's family office, and chipmaker Qualcomm also have said they intend to invest in the fund.

The PIF has played an important role in the financing of vital projects in the Kingdom, including in the oil refining, fertilizer, petrochemical and electricity sectors. In July 2014, the Council of Ministers granted the PIF authority to fund new companies inside and outside the Kingdom, either independently or in cooperation with the public and private sectors, without the council's prior approval.

PIF is chaired by HRH the Deputy Crown Prince Mohammad bin Salman Al Saud who is a rather ambitious chap who has his fingers in rather a few pies. According to the Independent: “He has a hand in nearly all elements of Saudi policy — from the war in Yemen that has cost the kingdom billions of dollars and led to international criticism over civilian deaths, to a push domestically to restrain Saudi Arabia’s free-spending habits and to break its “addiction” to oil.”

On the positive side he has begun to loosen social restrictions that grate on young people. Many Saudis and foreign officials believe he has a cunning plan to shove aside the current crown prince, Mohammed bin Nayef, to become the next king.

What we might be seeing is big tech starting to jockey for favours in Saudi Arabia.

Last modified on 05 January 2017
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