SoftBank Vision Fund

The SoftBank Vision Fund is an investment fund established by Japan’s SoftBank Group, a technology-focused conglomerate, on October 13, 2016, in partnership with the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia. The fund aims to maximize value and returns from investments in the global technology sector, making it one of the world’s largest investment funds. It is headquartered in the United Kingdom and managed by a subsidiary of the SoftBank Group.

SoftBank Vision Fund investments

The SoftBank Vision Fund began operations by attracting additional regional and international partners. In 2017, it announced the first close with a total committed capital of USD93 billion. The fund’s investors include, in addition to SoftBank Group and PIF, Mubadala Investment Company from the United Arab Emirates, Apple, Foxconn Technology Group, Qualcomm Incorporated, and Sharp.

SoftBank Vision Fund returns

The SoftBank Vision Fund explores numerous global investment opportunities, supported by investment capital provided by SoftBank Group and its investment partners. In 2016, the group signed a non-binding memorandum of understanding with PIF of Saudi Arabia, which stipulated that PIF would study the possibility of investing in the fund. PIF committed USD45 billion to the Vision Fund, in addition to contributions from several international investment entities.

PIF’s partnership in the SoftBank Vision Fund reflects its success in achieving the objectives of Saudi Vision 2030, through expansion into high-value, long-term projects. The fund’s investment returns have managed to remain stable, even amid significant downturns in global equity markets.

PIF partners with the 'SoftBank Vision Fund' to benefit from the leading companies in its portfolio, contributing to efforts to establish and develop promising sectors in Saudi Arabia. Since its inception, PIF has invested in many companies in sectors such as the Internet of Things (IoT), artificial intelligence (AI), financial technology (fintech), medical technology, and others.

The SoftBank Vision Fund listed several companies on stock exchanges in 2021, including 'Compass,' 'Full Truck Alliance,' and 'Didi' on the New York Stock Exchange, 'Grab' and 'Zymergen' on 'Nasdaq' Stock Exchange, and 'SenseTime' on the Hong Kong Stock Exchange.

Role of the SoftBank Vision Fund in the energy sector

PIF and the SoftBank Vision Fund work together to explore opportunities related to establishing industries in the field of power generation systems and their batteries in Saudi Arabia, which support sector diversification and create job opportunities in advanced technologies. This investment cooperation continues to deliver several benefits.

The renewable energy sector is one of the promising sectors in Saudi Arabia, adding significant value to the national economy and supporting the targets of Saudi Vision 2030. Among these is the development of the solar energy sector, which is one of the core objectives outlined in the Saudi Vision 2030, aiming to build a modern and diversified economy.

SoftBank Vision Fund and solar energy projects

As part of its technology investments in Saudi Arabia, the SoftBank Vision Fund initiated the Solar Plan 2030 with PIF. This plan established a new framework for the development of the solar energy sector in Saudi Arabia, starting with the creation of the country’s first-of-its-kind solar power plant with a capacity of three GW.

This investment is supported by several national institutions, including the Saudi Electricity Company (SEC), in which PIF owns a 74.3 percent stake. The agreement also included discussions on the Vision Fund acquiring a significant minority stake in SEC.

The agreement between PIF and the SoftBank Vision Fund created a roadmap for solar energy in Saudi Arabia, aiming to enhance SEC’s performance in line with Saudi Vision 2030. Under this agreement, the two funds are working through the company to develop solar energy in Saudi Arabia and capitalize on its significant resources in this field. The agreement also covers the establishment of solar energy manufacturing and storage facilities, alongside the creation of related jobs in Saudi Arabia.

Saudi Arabia supports solar energy as a clean and renewable source available within the country. In 2018, Crown Prince, Prime Minister, Chairman of the Council for Economic and Development Affairs, and Chairman of PIF, His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz signed a memorandum of understanding with Masayoshi Son, Chairman of the SoftBank Vision Fund, to launch the 'Solar Plan 2030,' the world’s largest initiative in the solar energy sector.

This plan strengthens Saudi Arabia’s efforts to develop solar energy systems and establishes a new framework for the development of the solar energy sector in the country. Under the agreement, a solar power company will be established to begin work on two solar plants with capacities of three GW and 4.2 GW. The agreement also includes the manufacturing and development of solar panels in Saudi Arabia, with the goal of generating between 150 GW and two hundred GW of solar power by 2030.

The SoftBank Vision Fund is also expanding its industrial activities in solar energy through the establishment of a solar panel and battery storage manufacturing plant in Saudi Arabia. This initiative supports the supply of clean and alternative energy, contributes to the local development and localization of solar technologies, and leverages the country’s silica-rich sands for panel production.

Local and global marketing

The cooperation program between the two funds also includes a commitment to explore the manufacturing and development of solar energy storage systems in Saudi Arabia, as well as the establishment of specialized companies for research and the development of solar panels with a capacity of about two hundred GW, produced in commercial quantities that allow for local and global marketing.

This significant investment in solar energy technologies supports Saudi Arabia’s ongoing efforts to develop energy production, enhancing its role in supplying global markets with oil amid steadily rising demand and declining production in some regions. These projects are also expected to contribute an estimated USD12 billion to Saudi Arabia’s GDP, in addition to providing estimated annual savings of about USD40 billion.