Riyadh, March 4, 2025 – In a major step toward strengthening Saudi Arabia's financial ecosystem, the Public Investment Fund (PIF) and Goldman Sachs Asset Management have today announced the signing of a non-binding Memorandum of Understanding (MoU). This strategic agreement marks a significant collaboration between PIF and Goldman Sachs Asset Management, positioning PIF as a key anchor investor for newly launched private credit and public equity strategies focused on Saudi Arabia and the broader Gulf Cooperation Council (GCC) region.
The MoU outlines the creation of investment funds designed to attract equity capital from international investors, with a notable portion of the funds earmarked for investments within Saudi Arabia. This initiative comes at a time when the Kingdom is actively working to diversify its economy and enhance its capital markets. By fostering such partnerships, PIF aims to bolster the domestic asset management industry, creating a more robust financial environment while encouraging both regional and international asset managers to expand their operations within the Kingdom.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, expressed the significance of the MoU, stating, “PIF’s collaboration with Goldman Sachs Asset Management demonstrates our continued efforts to build new partnerships with a diverse range of leading international financial institutions, enhancing local markets. This MoU is another element in PIF’s strategy of attracting global capital and expertise from a wide range of investors to the region, while facilitating knowledge transfer and capacity-building within Saudi Arabia.” His comments reflect the broader ambition to position Saudi Arabia as a hub for global investment, leveraging foreign expertise to help stimulate growth in the Kingdom’s financial and economic landscape.
Marc Nachmann, Global Head of Asset and Wealth Management at Goldman Sachs, also commented on the partnership, highlighting the potential of the new investment strategies. “We are proud to partner with PIF to develop these investment strategies, which we believe can offer strong risk-adjusted returns to our clients. Drawing on our decades of experience investing in both public and private markets, our aim is to help clients access the dynamic opportunities created by Saudi Arabia and the wider GCC’s rapid economic transformation. We are excited to see this partnership expand and to continue building our presence in Saudi Arabia.”
Under the terms of the MoU, the private credit strategy will focus on originating senior and junior loans, as well as debt instruments for companies that are either domiciled in the GCC region or heavily engaged with it in their operations. The public equity strategies will target investments in publicly listed equity securities of companies either listed on the Saudi stock exchange or with significant business connections to Saudi Arabia. This approach will provide international investors with an enhanced opportunity to tap into the rapidly growing and evolving markets within the Kingdom.
This partnership represents more than just financial growth. It is a commitment to knowledge-sharing between the two entities, aimed at developing the local asset management sector and further positioning Saudi Arabia as a leading destination for global investment. By leveraging PIF’s institutional strength and Goldman Sachs’ extensive experience in both public and private market investments, the collaboration is poised to accelerate the growth of the Kingdom’s financial markets, while simultaneously enriching the asset management expertise available within Saudi Arabia.
Goldman Sachs has been expanding its presence in Saudi Arabia in recent years, a trend that has included the recent opening of a new office in Riyadh. The company has expressed its intention to further explore expanding its local footprint, building on this new partnership with PIF. This growing presence underscores Goldman Sachs’ commitment to the Kingdom and its belief in the opportunities emerging from Saudi Arabia’s ongoing economic transformation.
Although the MoU is non-binding, it remains subject to the satisfaction of specific regulatory and internal conditions, including the approval of all necessary regulatory bodies and stakeholders involved. If finalized, this collaboration will play a pivotal role in diversifying the Kingdom’s financial landscape and attracting the global capital needed to support its Vision 2030 transformation. The partnership is also expected to catalyze further investment inflows into the GCC region, helping to solidify its position as a leading financial hub in the Middle East and beyond.
The signing of the MoU represents a significant milestone in PIF’s strategy of nurturing global financial partnerships, further advancing Saudi Arabia’s ambitious plans for economic diversification and growth.