BlackRock partners with Saudi infrastructure fund

BlackRock partners with Saudi infrastructure fund

Saudi Arabia has hired BlackRock to help set up and manage an infrastructure fund that has an investment target of $53bn in the kingdom over the next decade.

The US asset manager is partnering with Saudi Arabia’s National Development Fund, a state entity chaired by Crown Prince Mohammed bin Salman, to operate the infrastructure fund over a multiyear period.

The National Infrastructure Fund (NIF) will look to invest across sectors including power, water, transport, telecommunications, education and health as part of Prince Mohammed’s ambitious goal of modernising the conservative kingdom.

The crown prince is also seeking to position Saudi Arabia as a regional economic hub, but needs to upgrade its infrastructure as part of his efforts to attract more foreign direct investment and deliver better services.

BlackRock, which invests in infrastructure around the world, has not committed to invest in the NIF, which will be funded from its parent, the National Development Fund. But the asset manager could invest in future projects as Riyadh seeks to attract foreign and domestic investors, and establish public-private partnerships.

“This is a long-term partnership to be able to build and operate a world-class development finance institution,” said Yazeed Almubarak, head of BlackRock Saudi Arabia. “It will involve hiring and