RIYADH: Asset managers in Saudi Arabia are set to receive additional support from the Public Investment Fund through two new initiatives.
The organization announced the Managers Gate Platform and the Portfolio Management Development Program on the sidelines of the Future Investment Initiative forum in Riyadh.
The first program sees the launch of a new digital platform for collaboration between PIF and external fund managers.
The portal will enable secure data sharing, improved communications, and the digitization of operational and investment due diligence processes.
The Portfolio Management Development Program is an educational program delivered in partnership with Spain-based IE University and sponsored by SNB Capital, that will provide financial market training to aspiring managers in the industry in Saudi Arabia.
Abdulmajeed Al-Hagbani, head of securities investment at PIF, said: “The announcements demonstrate the wealth fund’s commitment to the Kingdom’s asset management industry and will improve the resilience, depth and quality of Saudi Arabia’s capital markets.”
He added: “The asset management industry plays a vital role to support the efficient allocation of capital and management of risk in the economy, helping to promote economic growth and stability.”
The PIF Asset Management Forum, held on the sidelines of the FII event, brought together key players in the industry to discuss critical issues and further assist best practices.
Speaking during the forum, PIF’s Deputy Governor, Yazeed Al-Humeid, noted that the asset management industry grew from SR400 billion ($100 billion) to SR800 billion, thus highlighting the importance of refining the expertise of specialists in this sector.
The portfolio management program aims to play a “crucial role” in the development and advancement of the local financial market and set a high standard within the growing industry.
The initiative, which is set to launch in the first quarter of 2024, is open to all Saudi nationals with a minimum of three years of experience in the field.
Interested individuals can apply to the 8–11-month program through PIF’s website and enroll free of charge.
“Having an upscale asset management business will definitely benefit the overall PIF objective in terms of adhering to best practices, governance, generating return and also compliance,” the deputy governor said.
He further noted that among PIF’s mandates is ensuring the development of various sectors within the Kingdom, asset management being one of them.
“As the sector will be developed and thrive over the next years, that will impact not just the PIF but the Kingdom’s assets overall development,” he added.
As Saudi Arabia moves to diversify its economy and deter from an oil-dependent structure, Al-Humeid stressed the role of the financial investment industry, namely venture capital.
The VC space in Saudi Arabia grew from less than SR50 million a year in investments in 2017 to “just shy of SR2 billion” in 2023, making the Kingdom the largest in VC investment within the Middle East and North Africa region.
The exponential growth observed in recent years aids the Saudi Arabian investment sector in attracting international investors as “what attracts international asset managers the most is a growing market,” the deputy governor noted.
During the forum, Al-Humeid also stated that it would soon become mandatory for global asset managers to have their “kitchens” located in the Kingdom to manage PIF assets.
