Saudi Arabia Ropes In U.S Investment Management Firm Blackrock To Establish $53 Billion National Infrastructure Fund

Leading global investment management firm Blackrock has been roped in by Kingdom of Saudi Arabia to help it establish and operationalise a new $53 billion national infrastructure fund to build assets such as schools, hospitals, transport, and the digital foundation.

The National Development Fund (NDF), a state entity which operates under the chairmanship of Crown Prince Mohammad bin Salman and manages more than $80bn of assets, on Monday (Oct 25) announced the establishment of the National Infrastructure Fund.

The infrastructure fund will use structured financing products, including debt, equity and guarantees to 'de-risk' infrastructure investment opportunities for local and global investors,

“The joining of the National Infrastructure Fund to the list of government lending institutions in the Kingdom will contribute significantly to supporting infrastructure projects in vital sectors such as transportation, water, energy, health, education, communications, digital infrastructure and others,” NDF Vice Chairman Mohammed bin Mazyad Al-Tuwaijri said.

“It will reflect positively on the development of the national economy and enhance the quality of life of the individual and society,” he added.

The Governor of the National Development Fund Stephen Paul Grove said that the establishment of the new fund coincided with the huge projects being undertaken by the Kingdom’s Vision 2030 in various infrastructure sectors. He added that it represent attractive investment opportunities for the private sector.

BlackRock has been appointed as a strategic partner to contribute to the establishment of the National Infrastructure Fund. The U.S investment management firm is expected to apply the best international practices in the management and governance of specialized financial institutions and funds.