BlackRock and the Saudi government have made a deal to set up an investment firm in Riyadh. It’s kind of a big deal, backed by a cool $5 billion from the kingdom’s Public Investment Fund.
This new venture, BlackRock Riyadh Investment Management, will be fully owned by the folks over at BlackRock. They’ll have their team in Riyadh managing funds mainly in Saudi Arabia but also across the wider Middle East and North Africa.
Their aim? To bring in more foreign capital to Saudi Arabia and spice up its capital markets with a range of investment funds managed by BlackRock.
This move is part of a bigger picture, with major players like BlackRock trying to strengthen ties and grab investment opportunities in the Middle East. They even added Amin Nasser, CEO of Saudi Aramco, to their board last summer.
“We’re pumped to build on our partnership with PIF and launch this cool international investment platform in Saudi Arabia,” said Larry Fink, BlackRock’s CEO. “Saudi Arabia is becoming more attractive for global investment, and we’re thrilled to invite investors from around the world to join in.”
Western investors have been heading to Riyadh lately, eager to be part of the $925 billion PIF’s efforts to diversify the Saudi economy.
On another note, there’s been a bunch of money managers, especially hedge funds, flocking to Abu Dhabi too. The government’s using its $1 trillion sovereign wealth fund and other big investments to turn the city into a major financial hub. Exciting stuff!
