BlackRock Ventures into Saudi Arabia with $5 Billion PIF Backing

BlackRock Ventures into Saudi Arabia with $5 Billion PIF Backing

By Staff Writer, 02 May 2024

BlackRock Inc., the world's largest asset manager, is gearing up to establish a new investment platform in Saudi Arabia, with a financial boost of up to $5 billion from the kingdom's sovereign wealth fund, the Public Investment Fund (PIF).

Under an MoU signed between BlackRock and PIF, the new venture, BlackRock Riyadh Investment Management (BRIM), will oversee investments spanning various asset classes, including both private and public markets.

Managed by a team based in Riyadh, the investment endeavors of BRIM will be bolstered by the extensive global asset management infrastructure of BlackRock, as highlighted in a joint statement issued by both entities.

However, this memorandum of understanding remains non-binding, contingent upon meeting specified conditions, securing regulatory approvals, and achieving predetermined milestones.

Commenting on the partnership, BlackRock's Chief Executive Officer, Larry Fink, expressed optimism about the growth prospects of Saudi Arabia's capital markets, underscoring their role in fostering future prosperity for the kingdom's citizens.

Highlighting the appeal of Saudi Arabia as an investment destination, particularly in light of the Vision 2030 initiative, Fink noted the country's increasing allure for international investors.

Echoing this sentiment, Yazeed A. Al-Humied, deputy governor of PIF, emphasized how the collaboration would further diversify and invigorate the Saudi investment landscape.

With assets exceeding $900 billion, PIF stands as a pivotal force behind Saudi Arabia's Vision 2030 program, spearheaded by Crown Prince Mohammad bin Salman, aimed at reducing reliance on oil revenues through economic diversification.

With a global asset portfolio totaling around $10 trillion, BlackRock eyes the Saudi market as a key strategic frontier within the GCC region, seeking to solidify its footprint in this significant market.

Source: Brinda Darasha / Zawya

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