RIYADH: Saudi Arabia’s Public Investment Fund (PIF) has signed a memorandum of understanding (MoU) with the Future Investment Initiative (FII) to bolster the Kingdom’s asset management sector, making it a focal point of future FII events.
In a recent announcement, PIF revealed that upcoming FII gatherings will prominently feature its Asset Management Forum, enhancing discourse and knowledge sharing on both national and international platforms.
This year’s Asset Management Forum, held alongside the eighth FII event, attracted over 300 key participants, including fund managers, government representatives, and sovereign wealth fund delegates.
“Robust and vibrant capital markets are essential for financing Saudi Arabia’s ambitious economic expansion plans. PIF is dedicated to fostering innovation and diversifying investment products and strategies to reshape the capital market,” stated Abdulmajeed Alhagbani, Head of Securities Investments at PIF.
Discussions at the 2024 forum encompassed the future trajectory of Saudi capital markets, the impact of artificial intelligence and digital transformation on portfolio management, and methods to nurture emerging wealth managers within the Kingdom.
“PIF is also eager to actively attract global asset managers and cultivate the skills of local emerging asset managers. This year, we celebrate the graduation of the inaugural cohort from PIF’s Portfolio Management Development Program,” he added.
A recent report by Fitch Ratings highlighted that Saudi Arabia’s asset management industry expanded by 13.5 percent year-on-year by mid-2024, exceeding $250 billion.
The MoU with FII aims to generate fresh networking avenues, linking the Asset Management Forum with entrepreneurs, innovators, and industry thought leaders.
Since 2018, assets managed by Capital Market Authority-licensed entities in Saudi Arabia have surged to reach SR800 billion ($213 billion). PIF has partnered with asset managers to introduce diversified products to the market, according to the statement.
PIF also inked additional MoUs at the FII event, including a significant agreement with Brookfield Asset Management to establish the Brookfield Middle East Partners platform—a private equity vehicle focusing on investments in Saudi Arabia and the broader region.
Other collaborations include MoUs with State Street Saudi Arabia Financial Solutions and Mizuho Financial Group Inc. to co-develop new investment products, reinforcing PIF’s mission to elevate Saudi Arabia’s standing in the global asset management arena.
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