BlackRock Saudi Arabia has signed a memorandum of understanding (MoU) with the Public Investment Fund (PIF). The MoU involves establishing a multi-asset investment platform in Riyadh. It will commence with an initial investment from the fund, contingent upon meeting mutually agreed-upon goals, with a value of up to $5 billion.
According to the MoU, BlackRock Saudi Arabia and the Public Investment Fund plan to collaborate on establishing the “BlackRock Riyadh Investment Management Platform” (BRIM) in Riyadh. BRIM’s services may encompass various investment strategies across multiple asset classes, including private investments, managed with support from BlackRock’s global asset management team.
The PIF leads efforts to enhance economic transformation in the Kingdom. Since 2017, the Fund has established 94 companies and contributed to the creation of more than 644,000 direct and indirect jobs locally.
In line with Saudi Arabia’s economic diversification efforts, the platform aims to boost foreign investment attraction and develop the local asset management sector. It also seeks to improve local financial markets, diversify investments, and enhance knowledge exchange and skills development for Saudi professionals. This aligns with PIF initiatives to foster financial market growth within the Kingdom.
Commenting on the partnership, Larry Fink, Chairman and CEO of BlackRock, said: “Enhancing the transfer of knowledge and full understanding of financial markets is one of the most important contributions that BlackRock is keen to make to the countries in which it operates, and we are pleased to build on the solid partnership that we have developed with the investment fund.”
Fink added: “The continued growth of the Kingdom’s capital markets and the diversification of its financial sector will achieve the future prosperity of its citizens and enhance the competitiveness of its companies and the strength of its economy, especially as the Kingdom has become an attractive destination for international investment with the transformation of Vision 2030 into a tangible reality.”
“We are pleased to present it to investors from all over the world the opportunity to participate in this distinguished long-term investment.”
The BRIM platform aims to enhance local markets’ insights and data by investing in infrastructure and research capabilities, utilizing local and international talent. Moreover, efforts involve launching the BRIM program for graduates and partnering with BlackRock’s educational academy to manage assets and conduct training events.
To complete the non-bindingoU signed today, a number of conditions and regulatory approvals are met, and a set of specific goals are met.
In October 2023, the PIF launched the “Asset Managers Portal” platform and the “Investment Portfolio Management Development Programme,” during the activities of the “PIF Asset Management Forum.”
The “Asset Managers Portal” is a digital platform to enhance cooperation between the Fund and fund managers.
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