The Public Investment Fund (PIF) signed a non-binding memorandum of understanding with Goldman Sachs Asset Management today. The agreement positions the PIF as a key strategic investor in new investment strategies, including private credit and public equities in Saudi Arabia and the Gulf Cooperation Council countries.
The goal of the new investment funds with Goldman Sachs is to attract capital from global investors, with a significant portion earmarked for investment in the Kingdom. This memorandum aims to strengthen the asset management sector in the Kingdom and encourage asset managers at regional and global levels to expand their presence in the local market. This effort aligns with PIF’s goals to support economic diversification and develop local financial markets.
Yazid Al-Humaid, Deputy Governor and Head of Investment Management in the Middle East and North Africa at PIF, highlighted the partnership with Goldman Sachs as a reflection of the continuous efforts by PIF to build new partnerships with a variety of leading global financial institutions to enhance local markets. This memorandum is an additional step toward achieving PIF’s vision of attracting a wide range of global capital and expertise to the region, transferring knowledge, and building capabilities in the Kingdom.
Mark Nakhman, Head of Global Asset Management and Wealth at Goldman Sachs, expressed pride in the partnership with PIF to develop investment strategies that are expected to deliver strong returns with managed risks for clients, leveraging Goldman Sachs’ expertise in both public and private market investments. The aim is to help clients access dynamic opportunities presented by the rapid economic transformation in the Kingdom and the Gulf Cooperation Council countries.
Under the memorandum of understanding, the private credit strategy will focus on providing direct loans, both primary and secondary, as well as debt financing for companies based in or primarily operating in the Gulf Cooperation Council countries. The public equities strategies will concentrate on investing in securities listed by companies on the Saudi financial market or those closely related to the Kingdom.
This partnership will facilitate knowledge exchange to stimulate growth in the asset management sector in the Kingdom, supporting PIF’s strategic efforts to enhance the Kingdom’s status as a leading global investment center by leveraging PIF’s institutional capabilities and Goldman Sachs’ expertise in managing assets in public and private markets.
Goldman Sachs has been expanding its presence in the Kingdom in recent years, announcing the opening of a new office in Riyadh and exploring opportunities to strengthen its presence as part of its partnerships with PIF. The non-binding memorandum of understanding signed today is subject to fulfilling certain necessary conditions, including obtaining all required regulatory and internal approvals and achieving specific goals.
