#Saudi Arabia #Riyadh #Neuberger Berman #PIF

Neuberger Berman Teams Up with PIF for $6 Billion Initiative

In a significant move to bolster the financial landscape of Saudi Arabia, Neuberger Berman, a prominent global investment management firm, has formed a partnership with the Public Investment Fund (PIF). This collaboration is underpinned by a non-binding memorandum of understanding (MoU) that aims to facilitate up to $6 billion in investments to enhance the regional capital markets.

The partnership promises a strategic blend of Neuberger Berman’s international expertise and PIF’s local insights, aiming not just at investment, but also promoting the growth of Saudi Arabia’s asset management sector. This initiative is in line with the broader objectives set out in Vision 2030, an ambitious blueprint for the country's economic diversification and growth.

Objectives of the Collaboration

The partnership is focused on several key areas:

• - Attracting International Investments: Leveraging Neuberger Berman’s established global presence, the initiative seeks to facilitate the inflow of foreign capital into Saudi Arabia.
• - Launching a Domestic Investment Platform: The collaboration plans to introduce a new Riyadh-based multi-asset investment management platform. This platform will be designed to manage various strategies within equities, fixed income, and private markets, expanding the local investment opportunities available.
• - Regulatory Compliance and Licensing: Neuberger Berman is actively pursuing the necessary licenses to operate within Saudi Arabia, ensuring that all regulatory requirements are met.

George Walker, CEO of Neuberger Berman, expressed his enthusiasm regarding this partnership, stating, "We are honored to partner with PIF, one of the largest and most sophisticated institutional investors. Through our global multi-asset investment platform and our local business expansion, we look forward to contributing to the domestic economy."

Enhancing Local Economic Ties

While the investment figures are notably large, the focus is also on enriching the local economic ecosystem. This entails building local teams, fostering job creation, and promoting education and training initiatives that align with the evolving needs of the region. Walker highlighted the goal of using Neuberger Berman's global expertise to meet these local needs effectively.

About the Public Investment Fund

PIF has emerged as a transformative force in Saudi Arabia’s economy, driving initiatives that generate new sectors of employment and business. Its role in the economy has been pivotal, with investments expanding into various fields, including technology and renewable energy, thereby shaping a diverse economic framework for the future.

Since its inception, PIF has taken steps to establish numerous companies that align with its commitment to economic transformation and diversifying the Saudi economy. This partnership with Neuberger Berman is another step toward solidifying its influence on the global investment landscape while supporting the nation's economic goals.

As the investment strategy unfolds, both parties are committed to ensuring a robust regulatory framework to support the various milestones outlined in this MoU. This collaboration promises to create a more resilient and dynamic capital market in Saudi Arabia.

Conclusion

The partnership between Neuberger Berman and PIF marks a strategic advancement in the regional financial sector. With a shared commitment to growth and innovation, this initiative is set to redefine investment dynamics in Saudi Arabia and attract international capital, ultimately contributing to the realization of Vision 2030's goals.