The Saudi Investment Bank (“SAIB”) and BNP Paribas Asset Management (“BNPP AM”) announced today that they have signed a protocol establishing the principles of a strategic cooperation in asset management in the Kingdom of Saudi Arabia (“the Kingdom”). SAIB and BNPP AM have been engaged in exclusive talks to finalize the transaction, which will be subject to the drafting and execution of definitive agreements and regulatory approvals. This protocol contemplates that BNPP AM will make an equity investment in a company to be incorporated under the laws of the Kingdom, following the transfer of SAIB's asset management operations to this company.
This strategic cooperation would combine SAIB's established record in asset management in the Kingdom and its thorough knowledge of local and regional markets and BNPP AM's global experience, management style and reach as a major world player in this domain. With this alliance, SAIB and BNPP AM will be well-positioned to leverage their respective expertise, and to capitalize on the significant potential of the asset management market in the Kingdom and in the region. Both institutions have outstanding experience in managing and developing successful joint-ventures.
SAIB has successfully developed a significant presence in asset management in the Kingdom. With 14 mutual funds currently managed and portfolio management services, it offers a wide range of products and services to its clients. The new company will continue to benefit from SAIB's expansion in its banking activities and product offerings for individuals, institutions and corporates, supported by the ambitious development plans for its branch network and distribution channels.
BNPP AM’s contribution and involvement as a shareholder of the new company will include in-depth advice, assistance, and tools to manage its operations. BNPP AM will also provide support and expertise in product development, as well as access to its worldwide distribution capabilities in institutional and retail money management.
Dr. Abdulaziz O’Hali, Chairman of SAIB, expressed his confidence that the new company will take a leading role in the asset management market in the Kingdom and the region. “We are convinced that this alliance will synergize the strengths, capabilities and expertise of both parties to introduce products and services of unparalleled quality and diversity.”
Mr. Gilles Glicenstein, Chairman and Chief Executive Officer of BNPP AM, stated: “We are very excited to join with SAIB in creating a top-class player in this key market. This alliance will bring a new dimension to BNPP AM in the region, where we have been present for more than five years now. It will also bring additional investment opportunities for our clients worldwide”. The new alliance represents a key step in BNPP AM’s strategy. It reinforces its position as a leader in the new markets, with operations and JVs in Argentina, Brazil, China, India, Korea, Morocco, Turkey, representing more than USD 33 billion of assets under management.
