PIF Asset Management Forum Concludes Second Edition at FII8 in Riyadh

The Public Investment Fund (PIF) successfully concluded the second edition of the PIF Asset Management Forum on October 31, 2024, held on the sidelines of the Future Investment Initiative 8th Edition (FII8) in Riyadh. The forum brought together over 300 high-level representatives from asset management entities, business leaders, government figures, and sovereign wealth funds, underscoring Saudi Arabia’s growing role as a global investment hub.

Context and Background

The two-day forum focused on the future of Saudi capital markets, the transformative role of artificial intelligence (AI) and digital transformation in the asset management industry, unlocking private markets in the Middle East and North Africa (MENA) region, and developing strategies for emerging asset managers within Saudi capital markets. This gathering aligns with Saudi Arabia’s Vision 2030 objectives to diversify the economy and strengthen the financial sector as a cornerstone of sustainable growth.

Key Details

During the forum, PIF and FII signed a non-binding memorandum of understanding (MoU) to integrate the PIF Asset Management Forum as a main pillar of the FII agenda both locally and internationally. The agreement also promotes “Crowdsourced Innovation,” enabling the forum to access diverse perspectives from FII events and engage with entrepreneurs, thought leaders, and innovators. Abdulmajeed Alhagbani, Head of Securities Investments at PIF, stated: “Strong and dynamic capital markets are an integral part of financing Saudi Arabia’s ambitious economic growth plans. PIF is committed to driving innovation and diversifying the range of investment products and initiatives to reshape the capital market.” He also highlighted the graduation of the first cohort from PIF’s Portfolio Management Development Program.

Since 2018, total assets under management held by capital market institutions licensed by the Capital Markets Authority (CMA) have doubled from SAR400 billion to SAR800 billion. Notable achievements include the listing of the CSOP Saudi Arabia ETF on the Stock Exchange of Hong Kong on November 29, 2023, with a listing size of $1 billion—the first Saudi Arabia ETF in the Asia-Pacific region and the world’s largest ETF investing in Saudi Arabia. Two feeder ETFs were simultaneously listed on the Shenzhen Stock Exchange and Shanghai Stock Exchange on July 16, 2024, with a combined launch size of $169 million, achieving a total combined turnover of over $670 million on listing day.

Implications and Impact

The forum’s outcomes are set to enhance Saudi Arabia’s capital markets by attracting global asset managers and nurturing emerging local talent. PIF also signed MoUs with several international financial institutions, including Brookfield Asset Management to launch the Brookfield Middle East Partners (BMEP) platform, as well as State Street Saudi Arabia Financial Solutions and Mizuho Financial Group Inc. to collaborate on new investment products. These agreements, though non-binding, signal strong international confidence in Saudi Arabia’s investment ecosystem and its potential for growth.

Vision 2030 Alignment

The second edition of the PIF Asset Management Forum demonstrates Saudi Arabia’s commitment to building a sophisticated financial landscape that supports Vision 2030. By fostering innovation, expanding asset management capabilities, and strengthening global partnerships, PIF is positioning the Kingdom as a premier destination for investment and financial services. The forum’s success, along with the launch of the Asset Managers Gate—which has registered over 90 asset managers since 2023—paves the way for a more diversified and resilient economy, driving long-term prosperity for Saudi Arabia and its global partners.

20 Questions

Q1. What was the PIF Asset Management Forum?

A1. It was the second edition of a forum hosted by the Public Investment Fund on the sidelines of FII8 in Riyadh, bringing together over 300 high-level representatives from asset management entities and sovereign wealth funds.

Q2. When did the forum take place?

A2. The forum concluded on October 31, 2024, as part of the Future Investment Initiative 8th Edition in Riyadh, Saudi Arabia.

Q3. Who attended the forum?

A3. Over 300 high-level representatives from asset management entities, business leaders, government figures, and sovereign wealth funds participated in the event.

Q4. What key topics were discussed at the forum?

A4. The forum explored the future of Saudi capital markets, the role of AI and digital transformation in asset management, unlocking MENA private markets, and strategies for emerging asset managers.

Q5. What was the main MoU signed during the forum?

A5. PIF and FII signed a non-binding MoU to integrate the PIF Asset Management Forum as a main pillar of the FII agenda both locally and internationally.

Q6. What is “Crowdsourced Innovation” under the MoU?

A6. It is a framework where the PIF Asset Management Forum aims to actively participate in FII events to access diverse perspectives and innovative ideas from entrepreneurs and thought leaders.

Q7. Who is Abdulmajeed Alhagbani?

A7. He is the Head of Securities Investments at PIF, who spoke at the forum about PIF’s commitment to driving innovation in capital markets and diversifying investment products.

Q8. What was celebrated at the forum regarding talent development?

A8. The graduation of the first cohort of trainees from PIF’s Portfolio Management Development Program was celebrated, highlighting efforts to nurture local talent.

Q9. How much have assets under management grown since 2018?

A9. Total assets under management held by CMA-licensed institutions rose from SAR400 billion in 2018 to SAR800 billion, reflecting significant growth in Saudi capital markets.

Q10. What is the CSOP Saudi Arabia ETF?

A10. It is the first Saudi Arabia ETF listed in the Asia-Pacific region, listed on the Hong Kong Stock Exchange on November 29, 2023, with a listing size of $1 billion.

Q11. How was the CSOP Saudi Arabia ETF significant globally?

A11. It is the world’s largest ETF investing in Saudi Arabia and was the largest IPO on the Hong Kong Stock Exchange in 2023.

Q12. What happened with feeder ETFs on July 16, 2024?

A12. Two feeder ETFs of the CSOP Saudi Arabia ETF were listed on the Shenzhen Stock Exchange and Shanghai Stock Exchange with a combined launch size of $169 million.

Q13. What was the total turnover of these feeder ETFs on listing day?

A13. The combined turnover of the feeder ETFs reached over $670 million on listing day, indicating strong investor interest.

Q14. What MoU did PIF sign with Brookfield Asset Management?

A14. PIF signed a non-binding MoU with Brookfield Asset Management to launch the Brookfield Middle East Partners (BMEP) platform, aiming to enhance investment collaboration.

Q15. Which other institutions signed MoUs with PIF at FII8?

A15. PIF signed MoUs with State Street Saudi Arabia Financial Solutions and Mizuho Financial Group Inc. to collaborate on launching new investment products.

Q16. Are these MoUs binding agreements?

A16. No, the MoUs are non-binding, and any future binding agreements would require internal and regulatory approvals.

Q17. What is the PIF Asset Managers Gate?

A17. Launched in 2023, it is a channel for cooperation between PIF and fund managers, facilitating partnerships and access to investment opportunities.

Q18. How many asset managers are registered with the PIF Asset Managers Gate?

A18. As of 2024, more than 90 asset managers have registered, with 36 actively working with PIF locally and globally.

Q19. How does the forum support Vision 2030?

A19. The forum supports Vision 2030 by strengthening the financial sector, attracting global asset managers, and fostering innovation in capital markets to diversify the economy.

Q20. What is the long-term significance of the forum for Saudi Arabia?

A20. The forum positions Saudi Arabia as a premier investment destination, enhances local asset management capabilities, and promotes sustainable economic growth through global partnerships.

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