Mukesh Ambani’s Reliance Industries has appointed the head of the Saudi Arabian Public Investment Fund to its board of directors, thus deepening the connection between the powerful Indian conglomerate and the oil-rich Gulf Kingdom .
Ambani said at the company’s annual meeting on Thursday that Yasir al-Rumayyan, the managing director of the Kingdom’s sovereign wealth fund, will join the board of directors as an independent director.
Rumayyan’s appointment is part of Reliance’s many years of hard work Reshaping the family business groupFounded by Mukesh’s father Dhirubhai nearly 50 years ago, it has entered the 21st century as an enterprise embedded in the global energy and technology economy.
Last year, Reliance brought a series of strategic investors from technology and private equity to its digital and retail businesses. Facebook and Google have a place on Reliance’s board of directors Digital subsidiary Jio Platforms, They have invested billions of dollars in it.
With the addition of Rumayyan, he is also the chairman of the national energy giant Saudi AramcoEmphasized to the Reliance board of directors that Ambani seeks to deepen its relationship with the Gulf Kingdom, whose oil and cash are critical to the future of the Indian Group’s core refining business.
Reliance is working hard Completed USD 15 billion investment Ambani first announced the acquisition of a 20% stake in the group’s refining and petrochemical assets from Saudi Arabia in 2019.
The transaction was postponed due to the impact of the Covid-19 pandemic and the economic crisis on Saudi Aramco’s finances. Negotiations were recently resumed, and Saudi Arabia considered initially using stocks to pay for the Reliance transaction, and then staggering cash payments within a few years.
PIF agreed last year Invest 1.5 billion USD in JioThis is part of a $20 billion financing boom for Reliance’s subsidiary. The Saudi Fund also invested US$1.3 billion in Reliance Retail.
Ambani expressed his “happy and honored” that Rumayyang joined the board of directors, calling him “one of the most famous figures in the fields of energy, finance and technology”.
Reliance’s boss also stated that the appointment will accelerate the “internationalization” of the Indian conglomerate, but did not disclose the details of what role Rumayyan will play.
Saudi Arabia has a close relationship with India, and India is a major consumer of crude oil in the country.With the weakening of Western oil demand growth, the Gulf Kingdom is Turning to big buyers in Asia To support long-term sales.
Like many Indian corporate groups, Reliance is mainly run by family members and long-term partners. Ambani’s wife Nita serves on Reliance’s board of directors along with Hital and Nikhil Meswani, both of whom are the sons of one of the company’s founding directors.
Ambani has established relationships with the Saudi royal family and elites, and has visited the country many times, including attending the annual investment summit of “Davos in the Desert” in Riyadh in 2019.