In a two-step chess move that underscores the growing economic collaboration in the Middle East, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) has entered a Memorandum of Understanding (MoU) with Saudi Arabia’s Hassana Investment Company to jointly explore investment ventures within the Kingdom of Saudi Arabia.
The agreement, signed by Israfil Mammadov, CEO of SOFAZ, and Saad bin Abdulmohsen Al-Fadly, CEO of Hassana, forges the way for both entities to investigate co-investment opportunities across private equity, infrastructure, and real estate. This MoU marks a notable stride in Azerbaijan’s economic outreach, with SOFAZ aiming to diversify its international investment portfolio by partnering in one of the most dynamic regions for foreign direct investment.
“This collaboration marks a significant milestone for SOFAZ’s investment strategy in Saudi Arabia,” Mammadov remarked. “It opens new avenues for growth and partnership, and we look forward to working closely with Hassana to identify impactful projects of mutual interest.”
Al-Fadly echoed this sentiment, highlighting the MoU’s potential to capitalize on emerging market opportunities in line with Saudi Arabia’s economic vision. “The collaboration will allow us to explore key investment sectors and drive long-term value creation,” he stated, emphasizing the partnership’s alignment with the goals of Saudi Vision 2030, the Kingdom’s ambitious plan to diversify its economy beyond oil.
This development comes as Saudi Arabia continues to attract substantial foreign investments, bolstered by major economic reforms and increased infrastructure projects under Vision 2030. With Hassana, the investment manager for Saudi Arabia’s General Organization for Social Insurance (GOSI), managing over SAR 1.2 trillion ($320 billion) across a broad portfolio, the company brings significant financial leverage and expertise to the partnership.
The collaboration holds promise for broad regional impact as SOFAZ leverages its own portfolio goals with the support of Saudi Arabia’s leading pension fund manager, focusing on sustainable, high-growth projects that align with the evolving needs of both nations. As discussions progress, the MoU signals a deepening economic connection between Azerbaijan and Saudi Arabia, with both sovereign and pension fund players poised to shape the next phase of investment-driven development in the region.
