The minister will have a clear objective: to attract investments that promote infrastructure, energy and natural resources projects in Argentina.
The Minister of Economy, Luis Caputois preparing the trip that will take him to visit Saudi Arabia in September, with the aim of attract strategic investments to Argentina. The Saudi fund manages a portfolio of approximately US$620,000 and has already shown interest in the country.
The trip will kick off a series of international efforts by the Government to promote the Large Investment Incentive Scheme (RIGI). Caputo will meet with businessmen and representatives of the Saudi Public Investment Fund (PIF)with a clear objective: attract investments that promote projects in infrastructure, energy and natural resources in Argentina.
Diversify investments
The Saudi fund, which manages a portfolio of approximately US$620 billion, has shown interest in Argentina, especially in key sectors such as renewable energy and agribusiness. This group sees Argentina as an opportunity to diversify its investments, traditionally concentrated in hydrocarbons. The ministry claims that the RIGI generated ”a huge interest” among investors.
They also detailed that the mission in Riyadh (capital of the country) will not include the negotiation of a direct bilateral financing packagebut will focus on presenting the new investment regime and exploring opportunities for joint projects.
Although the minister’s trip seems imminent, the full regulation of the RIGI is still awaited, and the announcement could be made soon. The regime, approved a month and a half ago in Congress as part of the Ley Bases, includes tax and exchange rate facilities designed to attract large foreign investments.
Argentina’s relationship with the Saudi Public Investment Fund
In 2023, Argentine officials held meetings with the PIF and other Saudi companies, seeking opportunities related to energy, infrastructure and tourism. At that time, former Economy Minister Sergio Massa, secured a US$500 million investment from the Saudi Development Fund to finance the Néstor Kirchner Gas Pipeline and electrical infrastructure projects.
The trip that Caputo will make will try to function as a continuation of these meetings, where the Government also projects that in the energy sector alone, the RIGI could attract investments of more than 54 billion dollars, a significant figure that is key to the economic stability of the country in the coming years.
The success of the tour in Saudi Arabia could mark a turning point for the economy and Javier Milei’s management, since positioning itself as an attractive destination for large-scale investments would attract the interest of one of the most important sovereign funds in the world.
Source: Ambito
