Saudi Public Investment Fund partners with BlackRock

Saudi Arabia’s sovereign wealth fund announced today a partnership with a major US investment firm. 

The Public Investment Fund and BlackRock signed a nonbinding memorandum of understanding on joint investments in infrastructure in Saudi Arabia. The investments will target the following sectors:

• energy and power
• utilities 
• water
• environment
• transportation
• telecommunications
• social infrastructure

The investments will focus on Saudi Arabia. The Public Investment Fund and BlackRock will work together to attract regional and international investment to the kingdom, according to a press release. 

Why it matters: This is not the first such agreement BlackRock has signed with a Gulf state. In March, the United Arab Emirates’ investment forum Investopedia signed an MoU with BlackRock. 

The Saudi Public Investment Fund has more than $600 billion in assets and has been actively investing in a variety of sectors this year. The fund, which is led by Crown Prince Mohammed bin Salman, is working to diversify the kingdom’s oil-based economy, per the Vision 2030 initiative. 

To this end, in August, the Public Investment Fund revealed massive holdings in Amazon, Google and other major US companies. In October, the fund announced the creation of a decarbonization company. 

The Public Investment Fund is also behind the LIV Golf league. 

Know more: BlackRock is controversial in the United States. The firm has been criticized for buying houses en masse, which some observers have said is making it harder for Americans to buy homes. Others have disputed this characterization.