Saudi Arabia’s Public Investment Fund (PIF) will be central to launching new funds focused on the Gulf region. This partnership with Goldman Sachs Asset Management marks a significant step in strengthening the country’s domestic asset management industry. The PIF, which holds $925 billion in assets, will act as the anchor investor in these new funds and primarily target Saudi Arabia and other Gulf Cooperation Council (GCC) countries.
The PIF aims to boost the economy by diversifying investments and forging closer ties with global financial players. Under this new collaboration, the funds will pursue private credit and public equity strategies. The goal is to attract global investors while allocating a significant portion of the capital for investment opportunities in Saudi Arabia.
The private credit side of the funds will focus on lending to businesses based in the Gulf region or those conducting substantial trade with it. The funds will target companies listed on the Saudi stock exchange or those with strong business relationships in Saudi Arabia. This move comes as global firms, including Goldman Sachs, expand their operations in the kingdom. Last year, Goldman Sachs received approval to establish its regional headquarters in Riyadh, further solidifying its commitment to Saudi Arabia’s economic growth.
This development aligns with the broader objectives of Crown Prince Mohammed bin Salman’s Vision 2030, which seeks to transform Saudi Arabia’s economy. As part of this vision, the kingdom plans to build new industries and carry out large-scale infrastructure projects known as giga-projects. These efforts aim to modernize the economy and reduce its dependency on oil revenues.
In addition to Goldman Sachs, other major firms like BlackRock have already partnered with the PIF to launch new investment platforms in the kingdom. These initiatives reflect a growing trend of international collaboration aimed at strengthening Saudi Arabia’s financial sector.
