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BlackRock (NYSE:BLK) will receive up to $5B from Saudi Arabia’s sovereign wealth fund to invest in the Middle East and establish a Riyadh-based multi-asset class investment platform, according to a Tuesday statement.
BlackRock Riyadh Investment Management will be established under a partnership between BlackRock and Saudi Arabia’s Public Investment Fund.
The new entity will encompass investment strategies across a range of asset classes, all of which are expected to be managed by a Riyadh-based portfolio management team and supported by BlackRock (BLK). BRIM will seek to raise additional funds from local and foreign investors.
“The continued growth of the kingdom’s capital markets and diversification of its financial sector will contribute to future prosperity for its citizens,” said BlackRock CEO Larry Fink. “Saudi Arabia has become an increasingly attractive destination for international investment.”
PIF has created 94 new companies and created more than 644K direct and indirect jobs locally since 2017.
The news comes as BlackRock (BLK) works to grow its presence in Saudi Arabia. In 2022, the asset manager had reportedly searched for further infrastructure deals in the country and the Gulf region.
