TLDR:
Saudi asset management industry focus grows
PIF signs asset management MoUs
State Street, Brookfield, FII, Mizuho
RIYADH (The Thursday Times) — Saudi Arabia’s Public Investment Fund has signed a significant memorandum of understanding with the Future Investment Institute to fortify the Kingdom’s asset management industry. This partnership promises to elevate the sector, positioning asset management as a primary theme in future FII events.
Upcoming FII gatherings will spotlight the Asset Management Forum as a central feature, drawing attention to a mix of local and global investment conversations. The latest forum, held alongside the eighth FII event, convened over three hundred influential figures, such as fund managers, sovereign wealth fund representatives, and government officials.
Capital markets key to economic vision
PIF’s Abdulmajeed Alhagbani, head of Securities Investments, stressed the role of robust capital markets in advancing Saudi Arabia’s ambitious economic vision. Alhagbani articulated PIF’s commitment to diversifying investment opportunities, underlining that capital market evolution will be driven by innovation. Discussions at the 2024 Asset Management Forum ranged from the prospects of Saudi capital markets to the integration of artificial intelligence and digital transformation into portfolio management.
Focus on emerging local wealth managers
Another key theme was nurturing emerging local wealth managers, a crucial component of Saudi Arabia’s broader economic plans. The Forum also celebrated the graduation of the first trainees from PIF’s Portfolio Management Development Programme, a testament to the Kingdom’s dedication to developing homegrown asset management talent.
Impressive growth in asset management sector
According to recent data from Fitch Ratings, Saudi Arabia’s asset management sector has shown impressive growth, expanding by 13.5 per cent year-on-year and exceeding the $250 billion mark by the end of the first half of 2024. The MoU with FII is expected to foster new networking opportunities, connecting local asset managers with a global ecosystem of entrepreneurs and thought leaders. Since 2018, assets managed by institutions licensed by the Capital Market Authority have doubled, marking a significant milestone in the Kingdom’s economic transformation.
Strategic partnerships to drive diversification
PIF also revealed a series of strategic partnerships during the FII event. The fund signed an MoU with Brookfield Asset Management to establish Brookfield Middle East Partners, a private equity platform set to focus on investments within Saudi Arabia and the surrounding region. This collaboration underscores PIF’s mission to broaden the Kingdom’s investment product offerings and attract global interest.
Agreements with global financial firms
Further MoUs included agreements with State Street Saudi Arabia Financial Solutions and Mizuho Financial Group Inc. Both partnerships aim to develop innovative investment products, solidifying Saudi Arabia’s ambition to become a global hub for asset management. These agreements exemplify PIF’s strategy of combining local development with global integration, aligning with the Kingdom’s long-term goals to diversify its economy and bolster financial stability.
