Japan plans to raise as much as ¥100 billion from sovereign wealth funds in oil-producing nations to boost foreign investment that is less than a quarter that of the United States.
The Ministry of Economy, Trade and Industry has initiated talks with sovereign wealth funds, including Saudi Arabian Investment Co., to create a fund to which Japan will provide initial capital of ¥100 billion from its budget in the next two years, a senior ministry official said on condition of anonymity because negotiations are under way.
Japan aims to attract some of the $3.3 trillion in assets held by sovereign wealth funds that want to expand investments beyond the U.S. and Europe after the U.S. subprime mortgage crisis.