RIYADH, Oct 27 (Reuters) - SandboxAQ, a U.S.-based

artificial intelligence and quantum technology firm, signed an

agreement with Bahrain's sovereign wealth fund on Monday aimed

at speeding up the development of drugs and creating biotech

assets worth $1 billion.

The deal, announced on the sidelines of Saudi Arabia's

flagship investment conference, the Future Investment Initiative

in Riyadh, will see Bahrain's Mumtalakat license SandboxAQ's

large quantitative models trained on physics, chemistry and

biology to accelerate drug discovery and scientific research.

"The collaboration will help position Bahrain as a regional

biotech hub, with a joint research committee guiding a

three-year program aimed at developing valuable new drugs," they

said in a statement.

SandboxAQ CEO Jack Hidary told Reuters the partnership would

empower Bahrain to create and own intellectual property in

biotech, including therapies targeting diseases prevalent in the

region such as diabetes and certain genetic disorders.

"Traditionally, the majority of biotech IP is owned in a

handful of countries. This enables Bahrain to develop its own

assets, focused both on regional and global health priorities,"

Hidary said.

The agreement will use Bahrain's digital health datasets and

hospital infrastructure to develop therapies. Clinical trials

are expected to begin in Bahrain, with potential for multi-site

studies, Hidary added.

He added that SandboxAQ was receiving interest from other

countries, including in the Gulf, for similar partnerships.

In January, Saudi oil giant Aramco signed an agreement with

SandboxAQ to use its models to increase the value of downstream

products.