Malaysia's state investment arm Khazanah Nasional said it has bought a 10 percent stake in Jadwa Investment, a Saudi-based shariah investment firm.

The cost of the purchase is 270.9 million ringgit ($75.7 million).

Launched in 2005, Jadwa Investment was one of the first Saudi companies to participate in a joint venture with state oil giant Saudi Aramco for its refining business. It also has investment banking, corporate finance, asset management and brokerage dealings.

"During such times of a global economic crisis, one must look to strengthen alliances and friendships where we have mutually sound and beneficial business models and partners," said Khazanah managing director Azman Mokhtar in a statement.

"This investment is an important milestone for Khazanah as it represents the continued strengthening of economic and bilateral relations between Malaysia and Saudi Arabia."    
As financial markets skid under growing fears of a global recession, some investment firms and Islamic financial institutions are still going ahead with expansion and fund-raising plans, reflecting a belief that the industry is relatively resilient to the meltdown.-Reuters