With this strategic fund Saudi Arabia plans to diversify its economy and wean it away from an oil-based economy.

Japan’s SoftBank Group and Saudi Arabia have collaborated in an effort to create the world’s largest private equity fund which could grow as large as $100 billion.

Hurt by dwindling oil prices, Saudi Arabia, in a series of dramatic business initiatives has launched a massive effort to move its economy to non-oil centric industries.

Masayoshi Son, SoftBank’s founder and chairman who has helped built his $50,000 startup into a $68 billion telecommunications and tech investment behemoth has joined Riyadh in this effort.

The tech fund will have the Public Investment Fund (PIF), Saudi Arabia’s top sovereign wealth fund, as its lead investment partner. Over the next five years, PIF could invest as much as $45 billion while SoftBank could chip in with at least $25 billion, said Softbank in a statement.

Several investors who are yet to be identified are also said to be in talks for their possible participation.

“With the establishment of the SoftBank Vision Fund, we will be able to step up investments in technology companies globally. Over the next decade, the SoftBank Vision Fund will be the biggest investor in the technology sector,” said Masayoshi Son.

The fund would be managed in Britain by a subsidiary of SoftBank.

Departure from oil

Of late, Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman has been leading an economic reform drive in the kingdom in a series of high-profile investments plans.

Part of this plan includes the expansion of PIF, which was founded in 1971 to finance development projects in the kingdom. The Deputy Crown Prince plans on expanding PIF’s capital from $160 billion to a whopping $2 trillion.

In June, PIF departed from its traditional approach of investing in low-risk investments and instead announced a $3.5 billion stake in U.S. ride hailing firm Uber.

This only illustrates how Riyadh plans on using its financial muscles to develop its economy. In Saudi Arabia Uber is popular with women, who are banned from driving in the kingdom.

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