Arab News, Wed, May 01, 2024 | Shawwal 22, 1445
BlackRock, PIF launch multi-asset investment management platform in Riyadh
Saudi Arabia:
BlackRock Saudi Arabia and the Public Investment Fund signed a memorandum of
understanding on Tuesday which entitles the former to establish a Riyadh-based
multi-asset investment platform.
It will be anchored by an initial investment mandate of up to $5 billion from
PIF, subject to the achievement of agreed milestones between the parties, said a
media statement.
Both parties have expressed the intention to establish BlackRock Riyadh
Investment Management, which will encompass investment strategies across a range
of asset classes. It is expected to be managed by a Riyadh-based portfolio
management team and supported by BlackRock’s global asset management platform.
Larry Fink, BlackRock’s CEO, said: “We are excited to build on the deep
partnership we have developed with PIF over many years to launch this
first-of-its-kind international investment management platform in Saudi Arabia.
“The continued growth of the Kingdom’s capital markets, and diversification of
its financial sector, will contribute to future prosperity for its citizens, the
competitiveness of its companies and the resilience of its economy.”
Saudi Arabia has become an increasingly attractive destination for international
investment as Vision 2030 comes to life, according to Fink.
He added: “We are pleased to offer investors from around the world the
opportunity to take part in this exciting, long-term opportunity.”
Yazeed Al-Humied, PIF’s deputy governor and head of MENA (Middle East and North
Africa) Investments, said: “PIF’s relationship with BlackRock is well
established and growing. This new landmark agreement represents a step forward
in PIF’s work in making the Saudi investment and asset management market more
internationally diverse and more dynamic.”
As Saudi Arabia continues to transform its economy, BRIM will seek to support
foreign institutional investment into the Kingdom and further enhance the Saudi
asset management industry, broadening local capital markets while driving
investor diversification across asset classes, facilitating knowledge sharing
and the development of Saudi-based asset management talent.
BRIM will be fully integrated with BlackRock’s investment capabilities and
operating platform, benefiting from global market expertise.
The non-binding memorandum is subject to satisfying certain necessary
conditions, regulatory approvals, and fulfilling specified milestones.