US-based fund manager BlackRock Inc and private equity firm Blackstone Group are planning to open offices in Saudi Arabia to tap various investment opportunities in the Kingdom, Crown Prince Mohammad bin Salman told Reuters on Friday.
The move comes in line with the Public Investment Fund’s (PIF) move to inject $20 billion into a $40-billion fund with Blackstone.
"PIF is setting a new role in the investment world," Prince Mohammad said.
The Kingdom’s sovereign wealth fund will make money from both its recent joint investments with Japan's SoftBank Group and with Blackstone, he added.
"That's why we made a 20 percent profit with SoftBank in five months. That's why we established a ... fund in Blackstone, which is expected to make a 14 percent profit and create different fields and different investments. That's why Blackstone and BlackRock are opening here," the prince said.
A spokeswoman for BlackRock said the fund manager said is considering setting up an office in the region.
Blackstone, however, declined to comment.
Western banks and fund managers have been expanding their presence in Saudi Arabia, following the Kingdom’s privatization plans and opening up of its financial markets to foreign investors.
Citigroup, JPMorgan Chase & Co., Morgan Stanley, Deutsche Bank AG and HSBC had earlier obtained investment banking licenses in the kingdom.
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