Private equity firm Blackstone Group, in partnership with Saudi Arabia’s sovereign wealth fund, announced that they would commit $40 billion to invest in infrastructure projects, mainly in the U.S.
Blackstone, co-founded by Trump supporter Stephen Schwarzman, entered a non-binding agreement with Saudi Arabia’s Public Investment Fund (PIF) to move forward with this initiative, the Hill reported.
Saudi Arabia’s PIF had agreed to put down $20 billion for the project, while the rest of the money would come from outside investors.
Although Blackstone says the fund has been negotiated between the firms for the past year, the partnership is non-binding, which means that there is not a formal structure for the fund yet and the firms are still discussing certain aspects of the agreement, Forbes reported.
Blackstone and PIF each gave a vote of confidence to the new partnership.
“This potential investment reflects our positive views around the ambitious infrastructure initiatives being undertaken in the United States as announced by President Trump,” PIF managing director Yasir al-Rumayyan said in a statement.
“This will create well-paying American jobs and will lay the foundation for stronger long-term economic growth,” Blackstone president Hamilton James said.
The partnership between the U.S. and Saudi Arabian companies comes as President Trump is visiting Saudi Arabia as the initial stop of his first trip abroad as president.
Trump has already signed a series of agreements with Saudi King Salman solidifying their military and economic partnerships on his first full day in the country.