Saudi Arabia has signed an agreement to form a $10bn investment fund with Russia. The deal was inked on on 6 July.

The Saudi Public Investment Fund (PIF) and the Russian Direct Investment Fund (RDIF) will invest in opportunities primarily in Russia over the next five years, according to Russian news agency Interfax.

The priority sectors for investment will be infrastructure, agriculture, medicine, logistics, retail and real estate. The partnership may also invest in other countries.

RDIF also signed a partnership with the Saudi Arabian General Investment Authority (Sagia) to study investment opportunities and potential projects in Russia.

The decision to establish a fund was discussed in June during a meeting between Russia’s President Vladimir Putin and Saudi Deputy Crown Prince Mohammed bin Salman al-Saud in St Petersburg.

Also in June, Saudi Arabia signed an agreement with Russia for cooperation in the field of peaceful use of nuclear energy. The agreement was signed by King Abdullah City for Atomic & Renewable Energy (KA-Care) and Russia’s Rosatom State Atomic Energy Corporation (Rosatom).

RDIF has a signed investment agreements with other regional countries including the UAE, Bahrain, Qatar, Kuwait and Egypt.