I’m not sure what to make of this press release. The agreement is clearly called “non-binding,” which means Saudi Arabia is not obliged to provide any funds. At the same time, the deal appears to shift power and control of the two Virgin companies to the Arab country, which if successful (a big “if”) would also quickly give Saudi Arabia both a manned and smallsat launching capability.
Why they chose Virgin appears at first baffling, considering that company’s repeated inability to achieve any of its promises. It could be, however, that Richard Branson’s funds are drying up, and that he needed this deal to keep both companies afloat. Saudi Arabia thus saw an opportunity and grabbed it.