BlackRock’s total investments in Saudi Arabia exceed $35 billion (SAR 120 billion), divided across three main sectors, including bonds, equities, and infrastructure, said Kashif Raza, Managing Director and CEO of the company’s Middle East investments.
BlackRock was among the first investors in Saudi debt instruments since the Kingdom’s inaugural international issuance in 2016. The firm’s bond investments surpassed $10 billion, including issuances by the Ministry of Finance, Public Investment Fund (PIF), Saudi Aramco, and other entities, he told Argaam on the sidelines of the Future Investment Initiative (FII) conference.
The firm is also active in the Saudi equities market, with BlackRock’s global equity funds participating in local IPOs.
The largest share of BlackRock’s Saudi portfolio, however, lies in infrastructure projects, particularly in energy. The firm ons 49% stakes in two joint ventures with Aramco; the first being Aramco Gas Pipelines Company, completed in 2022, and the second, signed yesterday, concerning the Jafurah Gas Field project.
Raza explained that the new project, valued at around $11 billion, is operated through Jafurah Midstream, a joint venture (JV) between Aramco (51%) and BlackRock (49%), to manage the assets for 20 years under a lease-and-leaseback model, with Aramco remaining the main operator.
Among other participants in the project are the Public Investment Fund, Hassana Investment Co, and investors from Asia and the GCC region, Raza said.
As for the Saudi financial market, he described the increase in foreign ownership threshold in Saudi equities as a positive step that will attract more investment inflows and raise Saudi companies’ weights in emerging market indices such as MSCI.
BlackRock also provides financial advisory services to governments and sovereign funds. Over the past four years, the company helped establish the National Infrastructure Fund in cooperation with the National Development Fund (NDF) — turning it from a concept into a fully operational entity with over 150 employees and more than SAR 10 billion invested in projects spanning infrastructure, renewable energy, green hydrogen, and district cooling.
BlackRock plans to expand investments in digital infrastructure, data centers, transport, and logistics, including ports and airports, Raza also noted.
He added that BlackRock relies on data analytics and artificial intelligence technologies in managing its investment funds, pointing out that the firm’s first Saudi equity fund uses an advanced AI-based analytical system called Systematic Active Equity to analyze markets and identify investment opportunities.
BlackRock is developing Shariah-compliant investment products to meet growing demand in the Saudi market, aiming to offer high-quality, cost-effective investment solutions to both individual and institutional investors within the Kingdom and beyond, he stated.
BlackRock’s total investments in Saudi Arabia exceed $35 billion (SAR 120 billion), divided across three main sectors, including bonds, equities, and infrastructure, said Kashif Raza, Managing Director and CEO of the company’s Middle East investments.
BlackRock was among the first investors in Saudi debt instruments since the Kingdom’s inaugural international issuance in 2016. The firm’s bond investments surpassed $10 billion, including issuances by the Ministry of Finance, Public Investment Fund (PIF), Saudi Aramco, and other entities, he told Argaam on the sidelines of the Future Investment Initiative (FII) conference.
The firm is also active in the Saudi equities market, with BlackRock’s global equity funds participating in local IPOs.
The largest share of BlackRock’s Saudi portfolio, however, lies in infrastructure projects, particularly in energy. The firm ons 49% stakes in two joint ventures with Aramco; the first being Aramco Gas Pipelines Company, completed in 2022, and the second, signed yesterday, concerning the Jafurah Gas Field project.
Raza explained that the new project, valued at around $11 billion, is operated through Jafurah Midstream, a joint venture (JV) between Aramco (51%) and BlackRock (49%), to manage the assets for 20 years under a lease-and-leaseback model, with Aramco remaining the main operator.
Among other participants in the project are the Public Investment Fund, Hassana Investment Co, and investors from Asia and the GCC region, Raza said.
As for the Saudi financial market, he described the increase in foreign ownership threshold in Saudi equities as a positive step that will attract more investment inflows and raise Saudi companies’ weights in emerging market indices such as MSCI.
BlackRock also provides financial advisory services to governments and sovereign funds. Over the past four years, the company helped establish the National Infrastructure Fund in cooperation with the National Development Fund (NDF) — turning it from a concept into a fully operational entity with over 150 employees and more than SAR 10 billion invested in projects spanning infrastructure, renewable energy, green hydrogen, and district cooling.
BlackRock plans to expand investments in digital infrastructure, data centers, transport, and logistics, including ports and airports, Raza also noted.
He added that BlackRock relies on data analytics and artificial intelligence technologies in managing its investment funds, pointing out that the firm’s first Saudi equity fund uses an advanced AI-based analytical system called Systematic Active Equity to analyze markets and identify investment opportunities.
BlackRock is developing Shariah-compliant investment products to meet growing demand in the Saudi market, aiming to offer high-quality, cost-effective investment solutions to both individual and institutional investors within the Kingdom and beyond, he stated.
