BNP Paribas Investment Partners & Saudi Investment Bank form JV

Published March 20th, 2008 - 07:27 GMT

BNP Paribas Investment Partners (“BNPP IP”) and The Saudi Investment Bank (“SAIB”) have signed today a strategic partnership in asset management in the Kingdom of Saudi Arabia. Under the terms of the agreement, BNPP IP, through the holding company BNP PAM Group, will buy a 25% stake in SAIB Asset Management Company (“SAIB AMC”), the newly formed subsidiary of SAIB. The transaction is subject to regulatory approvals, and is expected to be completed within a few months. The Joint Venture will then be renamed SAIB BNP Paribas Asset Management.

 

SAIB has successfully developed a significant presence in asset management in the Kingdom, putting forward its particularly strong expertise in Saudi and GCC equities and in Islamic funds. With US$2.2 billion of assets under management, SAIB Asset Management Company provides a wide range of investment management products to a variety of corporate and retail investors.

 

In recent months, BNPP IP and SAIB have begun to work together to develop new innovative solutions that will be released in the coming months.

 

Mr. Gilles Glicenstein, Head of BNPP IP, said that: “After announcing the signing of the Memorandum of Understanding (MoU) last year, we are now very happy to finalise our strategic cooperation with SAIB and have high expectations for our future together. The GCC market is one of the most exciting in the world and is getting more and more sophisticated. 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. This new operation will strengthen BNPP IP’s position as a leader in New Markets, where we already hold more than US$54 billion of assets under management, via JVs and operations in Argentina, Brazil, China, Korea, India, Morocco and Turkey".

 

This joint venture will benefit greatly from BNPP IP’s platform in the region, with offices in Bahrain and Kuwait, and will leverage BNPP IP's international presence in over 30 countries.

 

Dr. Abdulaziz Abdullah Al-Ohali, Chairman of SAIB, expressed his confidence that SAIB AMC would take a leading role in the asset management market in the Kingdom and the region. “We are convinced that this alliance will synergise the strengths, capabilities and expertise of SAIB and BNPP IP to introduce products and services of unparalleled quality and diversity.”

 

Mr. Saud Al Saleh, Chairman of SAIB AMC and General Manager of SAIB, said that: “The joint venture will combine the strength and entrepreneurial spirit of SAIB with the international product expertise and global network of BNPP IP. We will be well positioned to build on the already strong platform that we have established in the last few years”. He added that “the joint venture will of course carry on benefiting from SAIB’s development plans, in particular in network and distribution channels.”

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