DUBAI (Reuters/Web Desk) – Saudi Arabian Mining Company, known as Ma'aden, has agreed to acquire a 10 per cent stake in Brazil's base metals company Vale, it said in a bourse statement on Sunday, as part of a strategy to invest in global mining assets.

Ma'aden, through Manara, its joint venture established with the Public Investment Fund, on Thursday signed a binding agreement to acquire the 10pc stake in Vale Base Metals, based on an enterprise value of $26 billion.

"Manara’s investment into Vale will play a key role in helping it expand the production of copper and nickel across its asset portfolio, which are critical to the development of new technologies that will benefit the global energy transition," the company statement said.

The transaction, which will be financed by Ma'aden's own resources, is subject to regulatory approvals and expected to be completed in the first quarter of 2024.

It is the latest move to show how the Gulf States are working in an organised manner to diversify their economy by reducing their dependence on fossil fuels.

For this purpose, they are not only attracting foreign investment in the countries but also investing around the globe which also helps improving their portfolio and increasing influence on world stage.