PIF signs MoU with FII to boost Saudi asset management sector 

In a statement, PIF announced that upcoming FII events will feature its Asset Management Forum as a central component, elevating discussions and insights on both local and global stages. Shutterstock
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RIYADH: Saudi Arabia’s Public Investment Fund has inked a memorandum of understanding with the Future Investment Institute to strengthen the Kingdom’s asset management industry, making it a primary focus of future FII events. 

In a statement, PIF announced that upcoming FII events will feature its Asset Management Forum as a central component, elevating discussions and insights on both local and global stages. 

Held on the sidelines of the eighth FII event, this year’s Asset Management Forum drew over 300 prominent attendees, including fund managers, government officials, and representatives from sovereign wealth funds.  

“Strong and dynamic capital markets are an integral part of financing Saudi Arabia’s ambitious economic growth plans. PIF is committed to driving innovation and diversifying the range of investment products and initiatives to reshape the capital market,” said Abdulmajeed Alhagbani, head of Securities Investments at PIF. 

Topics at the 2024 forum covered the future of Saudi capital markets, the influence of artificial intelligence and digital transformation on portfolio management, and strategies for fostering emerging wealth managers in the Kingdom. 

“PIF is also keen to contribute effectively in attracting global asset managers and developing the capabilities of emerging local asset managers. This year we are also celebrating the graduation of the first cohort of trainees from PIF’s Portfolio Management Development Program,” he added. 

Earlier this month, a report by Fitch Ratings stated that Saudi Arabia’s asset management industry grew by 13.5 percent year on year by the end of the first half of 2024, surpassing $250 billion.  

The MoU with FII is expected to create new networking opportunities, connecting the Asset Management Forum with entrepreneurs, innovators, and thought leaders. 

Since 2018, assets managed by Capital Market Authority-licensed institutions in Saudi Arabia have doubled to reach SR800 billion ($213 billion). PIF has collaborated with asset managers to deliver diversified products to the market, the statement added. 

PIF signed additional MoUs at the FII event, including a notable agreement with Brookfield Asset Management to launch the Brookfield Middle East Partners platform — a private equity vehicle targeting investments in Saudi Arabia and the broader region. 

Further partnerships include MoUs with State Street Saudi Arabia Financial Solutions and Mizuho Financial Group Inc. to jointly develop new investment products, underscoring PIF’s strategy to enhance Saudi Arabia’s position in the global asset management landscape.