Saudi Arabia’s Public Investment Fund (PIF) has signed a non-binding memorandum of understanding (MoU) with global investment firm BlackRock to establish a framework to jointly explore infrastructure projects in the Middle East.

Since most of the investment activity will focus on Saudi Arabia, BlackRock plans to build a dedicated infrastructure investment team in Riyadh to cover the Middle East region, the sovereign wealth fund said in a statement today.

The target projects include sectors such as energy, power, utilities, water, environment, transportation, telecommunications and social infrastructure.

In addition, PIF and BlackRock will collaborate to draw regional and international investors to participate in investment projects, boost foreign direct investment (FDI) into the Kingdom, and add value to the Saudi Arabian economy and the wider market.

The MoU will even facilitate knowledge and skills transfer, the statement said.

The PIF is mandated to explore new investment opportunities in the MENA region. The partnership with BlackRock will help explore investment opportunities in Saudi Arabia and the Middle East.

In October 2021, Saudi Arabia, advised by BlackRock, launched a national infrastructure fund to support up to 200 billion Saudi riyals ($53 billion) in projects, including water, transportation, energy and health, over the next decade, state news agency SPA reported. 

(Editing by Seban Scaria