FII9 See Billions of Investments Pour into Saudi Arabia

Northern Trust Asset Management (NTAM), a leading global investment management firm, and Saui Arabia’s sovereign wealth fund -the Public Investment Fund (PIF) have announced plans to expand their relationship to include a new systematic quantitative investment strategy for the Kingdom’s market.

The announcement rounds off joint efforts between NTAM and PIF, under the framework of a non-binding memorandum of understanding (MOU) signed in May this year, for an up to $1 billion Saudi index strategy, which both parties are working to initiate its execution process in due course.

The MOU, which complements a series of PIF initiatives to promote further growth in the Saudi capital market ecosystem and enable a more robust international investment management sector based in Saudi Arabia, is aligned with the Saudi Vision 2030 initiative.

This was disclosed at the PIF Asset Management Forum, which was held on the side lines of the ninth edition of Future Investment Initiative (FII9) in Riyadh on Wednesday.

The announcement underscores NTAM’s long-term commitment to Saudi Arabia in alignment with PIF to promote further growth and development in the Saudi capital market ecosystem and drive product innovation.

PIF is one of the world’s most impactful investors, accelerating the growth of Saudi Arabia’s capital market and further driving the country’s economic transformation and its impact on global markets.

The new investment strategy will apply a systematic investment process that combines data science, alternative data, and disciplined quantitative factor models to identify and capture sources of excess return in the Saudi equity market. It also leverages innovation and research-driven insights to deliver consistent, risk-adjusted performance aligned with market efficiency and transparency.

NATM President Michael Hunstad said that for more than 30 years, Northern Trust has been a pioneer in quantitative investment strategies and they were delighted to bring their innovative, data-driven investment solutions to meet the needs of institutional investors and family offices in Saudi Arabia.

He also said that through deepening NTAM’s relationship with PIF, one of the world’s most impactful investors, they were underscoring their commitment to expanding asset management capabilities and local presence in the dynamic Saudi financial market.

Globally NTAM manages $48 billion in quantitative strategies across equities and fixed income, as of 30 September 2025. Northern Trust has served clients across the Middle East for more than 35 years and earlier this year announced the expansion of its asset management footprint in Saudi Arabia.

Al Futtaim Investments

Even the UAE’s Al Futtaim Al-Futtaim, one of the region’s most diversified conglomerates, announced a strategic commitment of $2.72 billion in investments over the next three years in Saudi Arabia.

The pledge builds on existing investments exceeding $1.36 billion in the Kingdom, and underscores Al-Futtaim’s deep conviction in the Kingdom’s Vision 2030 and its role as a key strategic partner in fostering economic diversification and sustainable growth.

This comprehensive investment strategy is projected to create over 1,000 new jobs in Saudi Arabia to support local talent development and leadership across key sectors. Al-Futtaim’s approach aims to support the Kingdom’s emphasis on localisation, with a strong focus on knowledge transfer, building robust local supply chains, and empowering a skilled Saudi workforce poised to lead future industries.

MOU with UKEF

The PIF also signed a separate MOU with UK Export Finance (UKEF), the UK’s export credit agency, to strengthen financial cooperation and expand trade and investment opportunities between the UK and Saudi Arabia during FII9.

The signing took place in the presence of UK Chancellor Rachel Reeves and Minister for Investment Lord Stockwood.

UKEF has a total market risk appetite of $5.28 billion-$6.61 billion in Saudi Arabia. Through this MoU, the agency will partner with PIF and its portfolio companies to access a pipeline of existing and prospective projects in the country that, if backed with UKEF financing, will offer numerous supply contracts for UK-based suppliers. The agreement will make it more attractive for companies in PIF’s ecosystem to procure goods and services from UK contractors.