Japanese financial services firm SBI Holdings and Saudi Arabia’s state-owned oil company Saudi Aramco are contemplating a partnership in digital asset investment and semiconductor production ventures.
The two entities recently signed a memorandum of understanding (MoU) to establish cooperation, which includes the establishment of SBI Middle East in Riyadh as a regional base for operations.
The MoU, signed on December 7, outlines that SBI and Saudi Aramco will explore collaboration in digital assets and consider co-investing in their respective digital asset portfolios. They may also identify Japanese digital asset startups interested in expanding to Saudi Arabia and initiate semiconductor production projects in both countries. The scope of the alliance has the potential to expand further with mutual agreement.
As the world’s second-largest corporation in terms of revenue, Saudi Aramco aims to enhance its supply chain through strategic investments, as mentioned in the MoU. While cryptocurrency is not yet officially recognized by legal entities in Saudi Arabia, the government has demonstrated interest in Web3 technologies. The partnership between SBI Holdings and Taiwan-based Powerchip Semiconductor Manufacturing was also highlighted.
As Ripple’s largest external shareholder, SBI Holdings has been a longstanding partner since 2018. In late November, the company announced an MoU with Circle, subject to regulatory approval, to enhance circulation and provide Web3 services in Japan.