Riyadh-Mubasher: Saudi Arabia gave the go-ahead for subscribing to $2.5 billion worth of shares in Asian Infrastructure Investment Bank (AIIB), to be one of the lender's regional state members reaching 37, local newspaper reported.

The bank allocated 25,446 shares for Saudi Arabia at a total value of $2.5 billion, or nearly 2.5% of the bank's authorised capital, according to OKAZ newspaper.

China earlier announced launching the AIIB that will compete with the US-led World Bank.  

The bank is expected to offer loans ranging between $10-15 billion annually over the first five-six years. It will start operations in the second quarter of 2016.