Saudi wealth fund signs $11bn deals to boost financial markets

15/05/2025 01:14 AST

Saudi Arabia's Public Investment Fund has signed a series of landmark agreements with leading US financial institutions worth a combined potential investment of up to $11 billion, signaling a major push to strengthen and diversify the Kingdom's capital markets as part of Vision 2030.

The deals - sealed with Franklin Templeton, Neuberger Berman, and BlackRock - aim to boost local asset management capabilities, deepen investor participation, and enhance the Kingdom's global financial standing.

These agreements were signed during US President Donald Trump's visit to Riyadh, underscoring the deepening economic ties between the two nations and the Kingdom's growing role as a regional and global financial hub.

Agreement with Franklin Templeton
In a major step toward diversifying Saudi Arabia's investment landscape, PIF signed a memorandum of understanding with Franklin Templeton to jointly invest up to $5 billion. The collaboration will span Saudi equities and fixed income strategies across both public and private markets.

According to a joint statement, the agreement focuses not only on capital deployment but also on knowledge transfer, talent development, and innovation within the local asset management sector.

The move aligns with PIF's broader agenda to partner with top global financial institutions and expand its international investment portfolio.

Neuberger Berman joins forces with PIF
In a separate deal, the wealth fund has partnered with Neuberger Berman to launch a Riyadh-based multi-asset investment platform with up to $6 billion in assets. The US firm, which manages $515 billion globally, will establish operations in Saudi Arabia - pending regulatory approval - covering equities, fixed income, and private market strategies.

George Walker, CEO of Neuberger Berman, emphasized the firm's commitment to building local teams, promoting education, and aligning with regional investment priorities under Vision 2030. The agreement is expected to attract further international interest and bolster the Kingdom's standing as a global investment destination.

Collaboration with BlackRock
Building on an existing relationship, PIF and BlackRock have signed a non-binding letter of intent to deepen their collaboration via a new index mandate focused on Saudi equities. The initiative, announced at the Saudi-US Investment Forum in Riyadh, will be managed through BlackRock's Riyadh Investment Management platform, established in 2024.

The expanded partnership underscores PIF's confidence in BlackRock's capabilities and highlights efforts to diversify investment offerings and advance Saudi Arabia's capital market ecosystem. While the agreement is subject to regulatory and internal approvals, it marks a significant step in positioning Saudi equities on the global stage.

These agreements follow a series of high-profile engagements aimed at strengthening Saudi-US economic ties, including recent discussions around broader investment flows.

Collectively, the new partnerships reinforce the PIF's role as a catalyst for financial transformation, in line with the national agenda to diversify the economy and promote sustainable growth.

PIF's latest annual report revealed a 390 percent surge in assets under management since the 2016 launch of Vision 2030 - underscoring the rapid pace of institutional development and global investor interest in the Kingdom.

Arab News