An interesting collaboration between Israel and Saudi Arabia has come to light. IDB Group, chaired by Nochi Dankner, is establishing a $1 billion investment fund together with Saudi partners in Swiss bank Credit Suisse to invest in emerging markets in Latin America, Asia, Europe, the Middle East, and Africa.
The fund will be called EMCO and will be the first investment collaboration of its kind between an Israeli company and a the Saudi investment company belonging to the Olayan family, a Qatari government investment company, and Swiss bank Credit Suisse, in which IDB holds 3.2% of its shares.
IDB will invest $250 million in the fund in accordance with the rate of investment. The investments will be made via two of IDB's subsidiaries – Koor Industries and Clal Insurance.
The fund's first investment priority will be in crude oil, gas, and coal. One of its top countries for investment is Indonesia.
Nochi Dankner, who holds the controlling interest in IDB, said, "Being significant share holders in Credit Suisse for two years allows for a unique opportunity to establish a joint Credit Suisse fund with three of the bank's large shareholders.
"We see large potential in emerging markets, which are a long-term growth engine of the global economy. The strengthening of the emerging markets is part of a significant political-economic process occurring in the world – one of whose peaks was the financial crisis – which in its essence is the transfer of economic hegemony from the West to the East.
"This move is an important layer in our strategy to continually expand IDB's activities abroad while creating a balanced business mix of investments in developing markets and in emerging markets."
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