BlackRock’s investments in Saudi Arabia exceed $35B: Kashif Riaz

Kashif Riaz, Managing Director at BlackRock says plans to expand investments in digital infrastructure, data centers, transport, and logistics in Saudi Arabia

BlackRock’s total investments in Saudi Arabia exceed $35 billion (SAR 120 billion), divided across three main sectors - bonds, equities, and infrastructure, said Kashif Riaz, Managing Director who leads BlackRock's Financial Markets Advisory business in the Middle East and BlackRock’s Riyadh-based investment management platform.

BlackRock was among the first investors in Saudi debt instruments since the Kingdom’s inaugural international issuance in 2016, he told Argaam on the sidelines of the Future Investment Initiative (FII) conference.

The Blackrock’s bond holdings have surpassed $10 billion, including issuances by the Ministry of Finance, Public Investment Fund (PIF), Saudi Aramco, and other entities, Riaz added.

BlackRock is also active in the Saudi equities market, with its global equity funds participating in local IPOs.

The largest share of BlackRock’s Saudi portfolio, however, lies in infrastructure projects, particularly in the energy sector. Blackrock owns 49% stakes in two joint ventures with Aramco: the first being Aramco Gas Pipelines Co., completed in 2022, and the second, signed on Oct. 29, for 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.

Aramco remains the main operator. Other participants in the project include the PIF, Hassana Investment Co. and investors from Asia and the GCC region, Riaz disclosed.

On the Saudi financial market, Riaz described the proposed increase in the foreign ownership threshold for Saudi equities as a positive step that will attract more investment inflows and raise Saudi companies’ weight 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), transforming 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, Riaz stated.

He added that BlackRock relies on data analytics and artificial intelligence to manage its investment funds, noting that its first Saudi equity fund uses an advanced AI-based analytical system, Systematic Active Equity, to analyze markets and identify opportunities.

BlackRock is also 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, Riaz said.