How PIF is spurring Saudi Arabia’s capital market

• PIF has a focus on upscaling asset managers, says Head of MENA Securities Investments, PIF
• The PIF Managers Gate is a key solution, says Head of Research, Securities Investments, MENA Investments Division, PIF
• In line with Vision 2030, PIF supports Saudi Arabia’s aim to become a leading financial hub

In recognition of the crucial role that the asset management industry plays in supporting Saudi Arabia’s economic growth and stability, PIF is focusing on upscaling the sector by raising the number of asset managers, partnering with global firms, and allocating capital to qualified asset managers to manage assets on behalf of PIF.

PIF’s Portfolio Management Development Program is an important component of the financial sector, notes Abdulmajeed Alhagbani, Head of Securities Investments, MENA Investments Division, PIF. Providing high-quality financial market training to grow emerging managers, the comprehensive educational program is being delivered in partnership with IE University, and sponsored by SNB Capital.

“We focus on upscaling asset managers, and uplifting even the products, the availability of the products, to make the capital market much more developed and move to a higher level,” said Alhagbani.

Indeed, partners managing assets for PIF have increased from five in 2019 to 32+ in 2024, while the total assets under management in the industry have soared from SAR400 billion in 2018 to SAR800 billion in 2024.

PIF Managers Gate is also a key solution that will transform the way PIF deals with its external managers, said Ahmad Kordi, Head of Research, Securities Investments, MENA Investments Division, PIF. “Every asset manager around the globe is able to reach out to PIF, register and go through the investment operational, and operational due diligence process to get themselves qualified to manage assets for PIF.”

The portal will enable secure data sharing, improved communications, and the digitization of operational as well as investment due diligence processes. “From the perspective of PIF, it allows us to have more effective investment decision making that is based on optimized data.”

In line with Saudi Vision 2030, PIF is taking a leading role in transforming Saudi Arabia’s economy, with a target for the country to become a leading financial hub. And as the largest allocator of capital in the Middle East and North Africa, PIF also looks to seize opportunities to invest in regionally-based private companies to diversify portfolio investments, reduce risks, and improve investment returns. 

To further support industry best practices, PIF’s Asset Management Forum brings together key players in the international asset management industry. Noting the significance of the event, Kordi said: “I think this forum will serve as a catalyst to enable that ambition.”