Officials at the signing ceremony.

Saudi Arabia’s sovereign wealth fund PIF (Public Investment Fund) has signed a deal with top investment group BlackRock to jointly explore infrastructure projects in the Middle East with a majority of the investment activity focused on the kingdom targeting sectors such as energy, water and transportation.

In line with this non-binding deal, BlackRock will look to build a dedicated infrastructure investment team in Riyadh to cover the Middle East region, said PIF.

The Saudi wealth fund said the duo will attract regional and international investors into these investment projects, thus boosting foreign direct investment (FDI) in Saudi Arabia, add value to the kingdom’s economy and the wider market while facilitating knowledge and skills transfer.

The target projects are across a range of sectors including energy, power, utilities, water, environment, transportation, telecommunications and social infrastructure, leveraging positive Saudi and regional market dynamics to deliver sustainable long-term returns, said a company spokesman.

The MoU signing is aligned with PIF’s mandate to explore new investment opportunities in the Mena region, while enabling and supporting Saudi private sector participation, he stated.

It further cements PIF’s partnership with BlackRock and allows both parties to explore opportunities in Saudi Arabia and across the Middle East, in line with wealth fund’s strategy to expand its local and regional investment portfolio, he added.