Saudi Arabia’s sovereign wealth fund on Wednesday announced up to $12 billion in investment deals with top U.S. asset managers after a visit by U.S. President Donald Trump, underscoring the kingdom’s growing appeal for Wall Street’s titans.
The partnerships highlight a deepening alignment between Western financial groups and Gulf sovereign wealth funds, as both seek to capitalize on trillion-dollar opportunities in emerging technologies, finance, and cross-border capital flows.
Franklin Templeton said it signed a non-binding memorandum of understanding (MoU) with the kingdom’s Public Investment Fund to partner in investing up to $5 billion in Saudi Arabia’s financial markets.
Neuberger Berman also agreed to a similar deal to invest up to $6 billion in the kingdom, and to launch a Riyadh-based multi-asset investment management platform, while Northern Trust Asset Management committed to up to $1 billion.
Infrastructure investment manager I Squared Capital said it has signed a MoU with PIF to establish a dedicated infrastructure investment strategy focused on the Middle East.
Saudi Arabia’s PIF, one of the world’s largest sovereign wealth funds with over $900 billion in assets, sits at the heart of Crown Prince Mohammed bin Salman’s economic transformation agenda.
The announcements came during Trump’s four-day tour of the Gulf, which has featured elaborate ceremonies and a wave of business agreements, including Saudi Arabia’s $600 billion investment pledge in the United States and $142 billion in arms deals.
Race to grow
Saudi Arabia is in a race to secure more outside money to keep ambitious plans to diversify its economy on track. The country set itself a lofty target to attract $100 billion in annual foreign direct investment by the turn of the decade.
Riyadh has taken steps to try to encourage foreign firms to invest more in the country. The government in 2021, for example, said companies seeking to secure state contracts must set up their regional headquarters in Saudi Arabia.
“Through our global multi-asset investment platform and our local business expansion, we look forward to contributing to the domestic economy, building local teams,” Neuberger Berman CEO George Walker said.
PIF has been increasing its focus on domestic investment as part of its commitment to the country’s economic transformation plans.
It has ploughed hundreds of billions of dollars into the local economy, in everything from a camel dairy firm to NEOM, a gargantuan futuristic city in the desert.
The first day of Trump’s visit to the kingdom, saw a number of U.S. technology firms, including sector heavyweights Nvidia and Advanced Micro Devices announce artificial intelligence deals in the Middle East.
Several notable agreements were struck with Humain, an AI startup launched by PIF, earlier this week.
Reuters
