Saudi Arabia has enlisted the services of BlackRock for the launch of a national infrastructure fund (NIF) that will invest more than US$53 billion over the next decade.
The fund will formally start operations in the first half of 2022 and will invest in areas such as water, transportation, energy and health.
“NIF will thus play a key role in broadening infrastructure investment opportunities and in deepening infrastructure capital markets in the kingdom”, said project director Abdullah Abobakr
Initial capital will come from the National Development Fund, the lesser known state fund in comparison to the Public Investment Fund which has typically served as the vehicle for Saudi Arabia’s international investment activity.
In order to attract local and global private investors, the fund will use a range of structured financing products, including debt, equity and guarantees, said Abobakr.
BlackRock, the world’s largest fund manager, will act as an adviser to the fund and has been brought on board to “implement international best practices in the management and governance of specialised financial institutions and funds”, according to NDF governor Stephen Paul Groff.
BlackRock opened its first office in Saudi Arabia in 2019. It also appointed a non-executive chairman and senior adviser for its Middle East business in 2020.
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