Saudi Arabia's sovereign wealth funds are examining acquisitions around the world, and are waiting for greater economic stability before making any definite moves, Saudi Finance Minister Dr. Ibrahim Al-Assaf told CNBC Thursday on the sidelines of the Saudi Finance Forum in London. “Obviously, the current period would offer opportunities from all over the world… We are constantly reviewing opportunities now and in the future,” he said. He added that he hoped the Group of 20 finance chiefs meeting in Paris Friday to discuss a world economy under threat from European nations mired in debt will help “stabilize the world economy” and “regain sustainable growth.” In Paris, proposals to double the size of the IMF as part of a broader international response to Europe's debt crisis ran into resistance from the US and others Friday, burying the idea for now and putting the onus firmly back on Europe. One G20 source said emerging market policymakers backed injecting some $350 billion into the International Monetary Fund. Al-Assaf said “the government funds (and) also the private sector are waiting to see when they will jump in,” he said. “When the signals are that the world economy has started stabilizing, and perhaps moving upwards, that would be a very good time.” Al-Assaf earlier said at the forum which focused on core areas of cooperation and integration between the Saudi and UK banking and finance sectors, that Saudi Arabia is making an aggressive push to increase trade with the UK, with ambitions to boost deals in the country's financial sector, the Financial Times reported. The forum reinforced the importance of diversification toward emerging markets, especially at the time when the wealth of immensely attractive investment opportunities is available to UK businesses in the Saudi economy. He said there was “enormous potential” for British businesses to invest in the Kingdom, which is the UK's largest trading partner in the Middle East. Al-Assaf highlighted more than $400 billion of infrastructure opportunities in the Kingdom and said the government would publish a list of more than 40 projects later this year. There are already more than 200 joint ventures between British and Saudi companies worth a total $17.5 bilion, including HSBC's partnership with the Saudi British Bank. He further said “Saudi insurance is set for explosive growth and there are UK firms which want to participate.” On Monday, Standard Chartered's private equity arm paid $75 million for a minority stake in Construction Products Holding, a subsidiary of Saudi Binladin Group. In June, Kohlberg Kravis Roberts became one of the first global private equity groups to be granted a license to carry out deals in Saudi Arabia, the FT said. Saudi Arabia plans to spend an estimated SR487.5 billion ($130 billion) - nearly 30 percent of its annual economic output - on projects including building new homes and hospitals. The IMF left its Saudi GDP growth and inflation forecasts for 2011 unchanged at 6.5 percent and 6.0 percent, respectively.
