BlackRock, the world's largest asset manager, is planning to launch a new investment platform in Saudi Arabia, backed by up to $5 billion from the kingdom's sovereign wealth fund, the Public Investment Fund.
BlackRock and the Public Investment Fund said they had signed a memorandum of understanding under which BlackRock would establish a multi-asset investment platform based in Riyadh, backed by an initial cash injection from the Public Investment Fund, subject to the achievement of certain agreed milestones.
They added that the platform would accelerate the growth of capital markets in Saudi Arabia, while a Riyadh-based investment team is looking to raise additional funds locally and abroad.
The Public Investment Fund is a key pillar of Crown Prince Mohammed bin Salman’s plans to transform the kingdom’s economy by creating new sectors and investing in what the government says are mega-projects to develop infrastructure.
A BlackRock spokesperson said its platform would focus on Saudi Arabia but would include investments across the Middle East and North Africa, including infrastructure, private market credit and public market equity.
Larry Fink, Chairman and CEO of BlackRock, said that the Kingdom has become an increasingly attractive destination for global investments.
Yazeed Al-Humaid, Deputy Governor of the Public Investment Fund, said the agreement would help make the Saudi investment market more diverse and vibrant internationally.
In the past few years, the fund has transformed into a global investment vehicle that bets billions of dollars on everything from technology to sports.
The fund invested $31.5 billion last year, making it the world's biggest spender sovereign wealth fund.
