Saudi Arabia is increasingly attracting both local and international investors, according to a top official from global asset management company BlackRock.
BlackRock’s Managing Director and CEO of Saudi Arabia, Yazeed Al-Mubarak, noted a growing interest from global clients in Middle Eastern assets. He also highlighted that regional investors are seeking more opportunities within the local market.
“As Vision 2030 progresses, Saudi Arabia has become a more attractive destination for investment,” Al-Mubarak stated.
In August, BlackRock signed an agreement with the Saudi Real Estate Refinance Co. (SRC) to develop the Kingdom’s real estate finance sector and increase industry participation in capital markets. This deal was signed during an official visit to the US by Saudi Arabia’s Minister of Municipalities and Housing, Majid Al-Hogail.
The agreement aims to enhance mortgage refinancing solutions for Saudi banks and housing finance companies, enabling global investors to engage with this growing asset class. Al-Mubarak emphasized the rapid growth of the Saudi housing sector driven by population expansion, urbanization, and government initiatives under Vision 2030.
“The Housing Program aims to increase homeownership to 70 percent by 2030,” he added. The mortgage market has significantly grown, surpassing $150 billion, with expectations to reach nearly $200 billion, despite recent slowdowns due to rising house prices and mortgage rates.
To support this growth, SRC plans to issue securitizations locally and internationally, contributing to the development of Saudi debt capital markets.
BlackRock Riyadh Investment Management (BRIM), launched in April with an initial $5 billion mandate from the Public Investment Fund (PIF), aims to further develop Saudi Arabia’s asset management sector. BRIM will manage investment strategies across various asset classes, both public and private, through a Riyadh-based team.
Al-Mubarak mentioned that the Saudi Mortgage Guarantee Services Co. (Damanat) will support BRIM’s mortgage-focused strategies. Long-term goals include developing the Kingdom’s mortgage securitization framework and related investment strategies to attract investors.
While there are no firm plans yet, Al-Mubarak expressed enthusiasm about future collaborations with SRC and the Ministry of Municipalities and Housing.