Robert Kapito, Chairman of BlackRock, the world’s largest asset management company, stated that there is $18 trillion in cash sitting idle in financial funds worldwide, which needs to be directed toward investments across various sectors. He noted that a portion of his company’s investments will go to Saudi Arabia because it "offers long-term returns."
Speaking at the third edition of Saudi Arabia’s Future Investment Initiative (FII) in Miami, Kapito highlighted the significant development and growth witnessed in the Kingdom, which presents substantial investment opportunities. He said, "If Saudi Arabia were a company and I were looking to invest, I would confidently invest in it."
The Saudi government considers foreign direct investment (FDI) a cornerstone of its efforts to stimulate economic growth and diversify income sources away from oil dependency. The Kingdom aims to attract $100 billion in foreign investments annually by the end of the decade.
During the FII conference in Riyadh last September, Saudi Investment Minister Khalid Al-Falih stated that all key indicators point to "positive growth" in this regard. He added that the path to achieving the 2030 investment target would be "challenging" but "achievable."
Infrastructure Sector Offers Investment Opportunities
Kapito believes that Saudi Arabia’s infrastructure is one of the most prominent sectors offering investment opportunities. He praised the progress made in the Diriyah project, one of the flagship initiatives under Vision 2030, which aims to diversify the region’s largest economy.
BlackRock is in the process of establishing a regional office in Saudi Arabia after obtaining a license last year.
This move aligns with Saudi Arabia’s efforts to attract major financial institutions and multinational corporations. According to Investment Minister Khalid Al-Falih, 600 global companies have already relocated their regional headquarters to the Kingdom, most of which are industrial firms.
BlackRock Intensifies Expansion Efforts in the Kingdom
BlackRock is ramping up its efforts to expand in Saudi Arabia. Earlier last year, the company secured a $5 billion investment commitment from Riyadh in April to invest in the Middle East and build an investment team based in the Saudi capital.
The company, which manages assets worth $10.5 trillion, hosted a gathering of senior executives from major corporations and government officials in Riyadh last year, marking its first large-scale event in the Saudi capital.