BlackRock, the world’s largest asset manager with $10 trillion in assets under management, is establishing an investment platform in Riyadh. This initiative is supported by a $5 billion anchor investment from Saudi Arabia’s Public Investment Fund (PIF), the kingdom’s sovereign wealth fund.
Announced on Tuesday, the collaboration follows the signing of a memorandum of understanding between BlackRock’s Saudi division and the PIF. The aim is to stimulate growth in the capital markets of the oil-rich Gulf country. The new platform, named BlackRock Riyadh Investment Management (BRIM), will implement investment strategies across various asset classes within the Saudi market. These will encompass both public and private markets, managed by a Riyadh-based investment team.
BRIM’s objectives include attracting foreign institutional investment to Saudi Arabia, developing the local asset management industry, expanding local capital markets, diversifying investors, and fostering the growth of asset management talent within the kingdom. This initiative aligns with Saudi Arabia’s Vision 2030, a multitrillion-dollar project focused on modernizing the country’s economy and reducing its reliance on oil. A key component of this vision is drawing major international institutions, investment, and foreign expertise to Saudi Arabia.
The establishment of BRIM aims to promote further growth within the Saudi capital market ecosystem and enable a thriving international investment management sector based in Saudi Arabia. Larry Fink, CEO of BlackRock, stated that the kingdom is becoming an increasingly attractive destination for international investment as Vision 2030 progresses.
BlackRock has maintained a longstanding relationship with Saudi Arabia and, despite significant controversy over the killing of journalist Jamal Khashoggi by Saudi agents in 2018, has continued its operations in the kingdom. Strengthening its ties further, BlackRock appointed Saudi Aramco CEO Amin Nasser to its board of directors in July 2023. This move underscores BlackRock’s strategic emphasis on the Middle East.
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