BlackRock Joins Saudi PIF for $5B Investment in Riyadh's BRIM Platform

By John Lopez

May 01, 2024 04:14 PM EDT

Asset management giant BlackRock has partnered with Saudi Arabia's Public Investment Fund (PIF) to launch a groundbreaking investment platform in Riyadh. The partnership involves a staggering $5 billion investment from PIF (via CNBC).

According to a joint press release, the newly established platform, BlackRock Riyadh Investment Management (BRIM), aims to attract foreign investment, grow Saudi asset management, expand local markets, and support talent development.

Larry Fink, BlackRock's CEO, said in a statement that this collaboration indicates the growing appeal of Saudi Arabia as an international investment destination, particularly with the implementation of Vision 2030, the kingdom's ambitious economic diversification plan.

BRIM will offer diverse investment strategies across different asset classes, managed by a dedicated team based in Riyadh. The platform seeks to stimulate capital market growth in Saudi Arabia and foster local asset management industry development.

Moreover, it aspires to attract foreign institutional investment and contribute to the kingdom's economic transformation from relying on oil.

BlackRock and Saudi Arabia's PIF launch BRIM, a $5 billion investment platform in Riyadh.
(Photo : Photo by Spencer Platt/Getty Images))

PIF and BlackRock

Yazeed Al-Humied, PIF's deputy governor and head of MENA Investments, expressed enthusiasm for the partnership, emphasizing its role in enhancing international diversity and dynamism within Saudi investment, Arab News reports.

A major step forward in PIF's efforts to make the Saudi investment market more globally inclusive and dynamic is the memorandum of understanding between BlackRock and PIF.

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Past Controversies

BlackRock's commitment to the Middle East is evident not only through its partnership with PIF but also in its strategic decisions. 

Despite past controversies, including the 2018 killing of journalist Jamal Khashoggi, BlackRock has remained steadfast in its collaboration with Saudi Arabia, CNBC points out.

In 2023, the company appointed Saudi Aramco CEO Amin Nasser to its board, further solidifying its ties with the kingdom.

Saudi Arabia's Vision 2030

This landmark collaboration represents a major milestone in Saudi Arabia's efforts to position itself as a global investment hub. With BRIM poised to leverage BlackRock's global expertise and PIF's substantial investment, the platform is set to play a pivotal role in shaping the future of finance in the region.

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