Asset management giant BlackRock is set to unveil an investment platform in Riyadh, with a significant boost from Saudi Arabia’s Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, which has committed a substantial $5 billion anchor investment.
The announcement made on Tuesday comes on the heels of a memorandum of understanding signed between BlackRock’s Saudi division and the PIF, signaling a joint effort to catalyze growth in the capital markets of the oil-rich Gulf nation.
With assets under management totaling $10 trillion, BlackRock will roll out investment strategies spanning various asset classes tailored for the Saudi market. These strategies will encompass both public and private markets and will be overseen by an investment team based in Riyadh, according to a joint press release issued by BlackRock and the PIF.
The newly established platform, to be known as BlackRock Riyadh Investment Management (BRIM), is poised to play a pivotal role in attracting foreign institutional investment into Saudi Arabia.
Additionally, BRIM aims to bolster the Saudi asset management sector, foster the expansion of local capital markets, promote investor diversification, and cultivate talent within the kingdom’s asset management industry. Larry Fink, CEO of BlackRock, emphasized in the statement that the kingdom “has emerged as an increasingly appealing destination for international investment as Vision 2030 takes shape.”
Despite significant controversy surrounding the killing of journalist Jamal Khashoggi by Saudi agents in 2018, the asset management giant has maintained its involvement with Saudi Arabia for several years, reaffirming its commitment to the region.
In a further demonstration of its deepening ties with the kingdom, BlackRock granted Saudi Aramco CEO Amin Nasser a seat on its board of directors in July 2023. Saudi Aramco stands as the world’s largest oil company.
BlackRock clarified at the time that this decision underscored the firm’s focus on the Middle East as a key component of its long-term strategy.
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