Chicago-based Northern Trust Asset Management and Saudi Arabia’s sovereign wealth fund PIF have signed a memorandum of understanding that will see Northern Trust expand in the Middle East kingdom.
The agreement, which expects to see the launch of an up to US$1 billion Saudi mandate, aims to support growth in Saudi Arabia’s capital markets and asset management sector, aligned to the Saudi Vision 2030 initiative.
The signed non-binding MoU envisages the launch of an index strategy for the regional market and to leverage Northern Trust’s integrated technology platform.
The deal was announced during president Donald Trump’s four day diplomatic and business trip to the Gulf this week.
“We are pleased to signal the start of this important strategic partnership and look forward to developing a long-standing relationship with PIF, supporting their needs as they drive opportunities and progress in the region,” said NTAM President, Daniel Gamba.
“We are committed to expanding our asset management capabilities and presence in the dynamic and rapidly expanding Saudi financial market as part of our strategy for growth across Europe, Middle East and Africa.”
Northern Trust has operated in the Middle East for more than 35 years. In 2023 it announced the establishment of its regional headquarters for the Middle East in Saudi Arabia and will now see the expansion of its asset management footprint in the kingdom.
