Saudi Sovereign Wealth Fund's First Investment in an Israeli Startup
Trump's Eldest Son-in-Law Kushner's Fund Under Review... Most Investments from Saudi Capital
Saudi-Israel Relations May Normalize if Investment Confirmed
[Asia Economy International Desk Reporter] The Wall Street Journal (WSJ) reported that Saudi Arabia's sovereign wealth fund is investing in Israeli companies. This marks the first time that Saudi sovereign wealth fund money has been invested in Israeli firms.
![[Image source=Yonhap News]](http://www.asiae.co.kr/news/img_view.htm?img=2018062510213519825_1529889692.jpg)
On the 7th (local time), WSJ cited sources saying that Affinity Partners, a private equity fund founded by Jared Kushner, the eldest son-in-law of former U.S. President Donald Trump, is considering investments in Israeli startups.
Of the $3 billion (approximately 3.8 trillion KRW) managed by Affinity Partners, $2 billion (2.5 trillion KRW) comes from the Public Investment Fund, Saudi Arabia's sovereign wealth fund led by Crown Prince Mohammed bin Salman, the kingdom's de facto ruler.
If Affinity Partners' investment plan is finalized, it would mean that the Saudi sovereign wealth fund is indirectly investing in Israel through Affinity Partners. Affinity Partners has already confirmed investments in two Israeli startups and is reviewing other candidates.
WSJ reported that until now, there has been no confirmation of Saudi sovereign wealth fund money being invested in Israeli-related companies. Saudi Arabia, considered a leading country in the Middle East, does not have diplomatic relations with Israel.
WSJ analyzed that the Saudi sovereign wealth fund's investment in Israel could serve as a breakthrough step toward normalizing relations between the two countries in the future.
The large investment by the Saudi sovereign wealth fund into Kushner's private equity fund, despite his background as a real estate heir with little financial investment experience, sparked controversy within Saudi Arabia.
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An expert panel overseeing the sovereign wealth fund's investment activities recommended against the investment, citing Affinity Partners' lack of experience. However, the board led by Crown Prince Mohammed bin Salman decided to proceed with the $2 billion investment. This has led some to interpret the move as Saudi Arabia repaying favors to the Trump administration, which was considered strongly pro-Saudi.
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