BlackRock to Launch $5 Billion Investment Platform in Riyadh, Backed by Saudi Arabia's PIF

BlackRock, the world's largest asset manager, has announced plans to establish a $5 billion investment platform in Riyadh, Saudi Arabia. The platform, called BlackRock Riyadh Investment Management (BRIM), will be backed by the country's sovereign wealth fund, the Public Investment Fund (PIF). The goal of this partnership is to accelerate the growth of Saudi capital markets and attract more foreign institutional investment.

BlackRock and PIF have signed an agreement with the Saudi wealth fund to support the new Riyadh-based multi-asset investment platform. PIF will provide an initial anchor investment of up to $5 billion to the platform, which will invest across public and private markets, focusing on assets in the Middle East and North Africa region, particularly Saudi Arabia. The platform aims to raise additional funds from local and international investors.

Why this matters: The partnership between BlackRock and PIF is a significant step in Saudi Arabia's efforts to diversify its economy and attract foreign investment. The establishment of BRIM aligns with the country's Vision 2030 plan, which seeks to reduce its dependence on oil revenues and develop a more dynamic and diverse economy.

The agreement is part of Saudi Crown Prince Mohammad bin Salman's plans to transform the kingdom's economy by building new industries and investing in large-scale infrastructure projects. Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, expressed enthusiasm for the collaboration, stating, "PIF is looking forward to partnering with BlackRock to explore the many investment opportunities in Saudi Arabia and across the broader MENA region. This partnership will further support our mission to build a world-class investment portfolio, deliver sustainable returns, and drive the economic transformation of Saudi Arabia."

BlackRock's chairman and CEO, Larry Fink, highlighted Saudi Arabia's growing attractiveness as a destination for international investment, saying, "The economic transformation underway in Saudi Arabia presents exciting opportunities for investors and we look forward to partnering with PIF to identify and structure investment solutions that advance the Kingdom's long-term economic vision."

The establishment of BRIM is expected to contribute to the continued growth and diversification of Saudi Arabia's capital markets and financial sector. The platform will focus on investments across various asset classes, including infrastructure, credit, and public equities. By leveraging BlackRock's global expertise and PIF's local knowledge, the partnership aims to create attractive investment opportunities and enhance the competitiveness of Saudi companies.

Key Takeaways

• BlackRock to establish $5B investment platform in Riyadh, Saudi Arabia with PIF backing.
• Platform aims to accelerate growth of Saudi capital markets and attract foreign investment.
• Partnership aligns with Saudi's Vision 2030 plan to diversify economy beyond oil revenues.
• PIF to provide initial $5B anchor investment, platform to raise more from local/global investors.
• Platform to focus on investments across assets like infrastructure, credit, and public equities.