PIF and BlackRock launch $5bn Saudi capital markets platform

PIF

Public Investment Fund (PIF), Saudi Arabia’s sovereign fund, and BlackRock, the world’s largest asset manager, are to launch a new investment platform to accelerate growth of the kingdom’s capital markets.

The investment management platform, which will be set up in Riyadh, will be anchored by up to $5 billion from PIF. The investment is subject to achieving certain milestones, which were not disclosed.

The Saudi office of BlackRock and PIF signed a memorandum of understanding to establish BlackRock Riyadh Investment Management (Brim), to be overseen by a Riyadh-based portfolio management team that will also aim to raise new funds from local and international investors.

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BlackRock’s financial markets advisory group, which provides capital market and risk and analytics advice to governments and financial institutions globally, will support the expansion of local capital markets and enhance market structure.

Brim aims to invest in supporting infrastructure and investment research capabilities locally.

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Saudi Arabia has become an increasingly attractive destination for international investment as Vision 2030 comes to life, said Larry Fink, chairman and CEO, BlackRock.

The continued growth of the kingdom’s capital markets and diversification of its financial sector will contribute to the competitiveness of its companies and the resilience of its economy, he added.

Partnering with global international companies and asset managers such as BlackRock is part of PIF’s growth strategy, added Yazeed Al-Humied, deputy governor and head of Mena Investments at PIF.

Since 2017, the sovereign fund has created 94 new companies and generated over 644,000 direct and indirect jobs.