BNP Paribas and The Saudi Investment Bank launch asset manager
French Bank BNP Paribas has teamed up with The Saudi Investment Bank (SAIB) to launch a new asset manager in Saudi Arabia. Under the terms of the partnership, BNP Paribas Investment Partners (BNPP IP), though the holding company BNP PAM Group, will buy a 25% stake in SAIB Asset Management Company, a newly-formed subsidiary of SAIB. The joint venture will be renamed SAIB BNP Paribas Asset Management.
The transaction is subject to regulatory approvals, and the banks expect it to close within a few months. SAIB Asset Management Company has $2.2 billion of assets under management and provides a wide range of investment management products to a variety of corporate and retail investors. According to BNP Paribas, the company has particularly strong expertise in Saudi and Gulf Cooperation Council (GCC) equities and Islamic funds.
BNP Paribas says that in recent months, BNPP IP and SAIB have started working together to develop new solutions that will be released in the coming months.
“The GCC market is one of the most exciting in the world and is getting more and more sophisticated,” says Gilles Glicenstein, Head of BNPP IP. “With SAIB’s expertise in the region, and our worldwide experience and client reach, this new asset management firm is well positioned to become one of the key players of the region.”