Global asset management firm BlackRock announced on Tuesday its plans to establish a new investment platform in Saudi Arabia, with backing of up to $5B from the kingdom’s sovereign wealth fund, the Public Investment Fund (PIF).
The new venture, named BlackRock Riyadh Investment Management, will also receive additional funding from local and international investors.
Operating from Riyadh, the investment platform will diversify its investments across various asset classes, aiming to bolster the growth of capital markets in Saudi Arabia by facilitating foreign institutional investment.
Larry Fink, chairman and CEO of BlackRock, expressed optimism about the kingdom’s capital markets growth, attributing it to the country’s Vision 2030 agenda. He highlighted Saudi Arabia’s attractiveness to international investors and their opportunity to participate in the country’s long-term prospects.
BlackRock Riyadh Investment will encompass strategies spanning private and public markets, with its investment activities managed by a team based in Riyadh, supported by BlackRock’s expertise and resources.
PIF hailed the partnership as part of its efforts to advance the Saudi capital markets ecosystem and international investment management sector. The collaboration aims to integrate BlackRock’s global investment capabilities and technology with local investment expertise.
The memorandum of understanding (MoU) between PIF and BlackRock is contingent upon regulatory approvals and agreed-upon milestones.
PIF, integral to Saudi Arabia’s economic diversification plans, has spearheaded initiatives to create new industries and invest in infrastructure projects since 2017. The sovereign fund’s significant investments include stakes in various tech companies, soccer teams, electric car manufacturers, and ambitious city projects such as NEOM City and the Red Sea Development Company’s tourism venture.
