Executives of the Saudi Economic and Development Company, the Middle Eastern shariah compliant wealth management firm, is in initial talks with Malaysian businessmen for potential investments in the East Coast Economic Region, the Saudi Gazette writes.

"Global investments are a key aspect of our asset allocation model and we want to explore investment opportunities in the Malaysian economy as part of our focus on making investments in the shariah compliant businesses across the world," Sheikh Saleh Bin-Mahfouz, the chairman of SEDCO, was quoted as having said.

Malaysia and Saudi Arabia have an existing bilateral trade pact and the recent visit by the Malaysian delegation is expected to further bolster relations between the two. Malaysia is being groomed to become the Islamic banking hub for Asia and is one of the largest investors in Saudia Arabia.

Dr Adnan Soufi, the CEO of SEDCO, welcomed the developments.

"From our perspective, Malaysia is an attractive investment destination given its progressive industry and strategic location in an increasingly significant Asian economy," Soufi reportedly commented.

It has been said that the primary focus of the investments would be on the oil and gas industry in the Middle East. Negotations are ongoing.