Stock Groups

BlackRock on hunt for Gulf infrastructure deals -Breaking

[ad_1]

© Reuters. FILEPHOTO: A showroom hosts BlackRock in Davos. January 22, 2020. REUTERS/Arnd Wiegmann

By Saeed Azhar

DUBAI (Reuters), BlackRock Inc (NYSE) – The world’s largest money manager is looking for more infrastructure deals in Saudi Arabia, the Gulf Region, and also wants to invest in local private companies, a senior executive stated.

Recently, the U.S. group purchased $15.5 billion of stakes in a joint purchase. Saudi Aramco (SE:), Abu Dhabi’s largest gas pipelines company. A few years ago, ADNOC had acquired a minority stake in the pipeline assets of Abu Dhabi’s energy company ADNOC.

Stephen Cohen, the head of BlackRock’s Europe, Middle East, and Africa division told Reuters that they are looking into many opportunities.

“We are looking at many things on the market side of the country,” he stated, citing Saudi Arabian growth companies and others in the region.

Cohen stated that BlackRock also looks to the region to invest in infrastructure and to provide “transition financing” for long-term, sustainable energy projects. This will help reduce carbon emissions.

The Gulf oil producers may consider selling stakes in their energy assets or raising cash via long-term leasing to capitalize on the rebound in prices. This will allow them to be more attractive for foreign investors.

RUSSIA’S IMPACT

He said that Europe’s decision to diversify its energy resources “naturally” plays to the strengths of the Gulf region when he was asked about the effect of Russia-Ukraine war.

Cohen stated that before the Russian invasion, Russia’s exposure in clients’ portfolios was below 0.2% of BlackRock assets under management.

BlackRock’s spokesperson said Wednesday in an email that Russia exposure of clients was less than 0.1% after the markdown of the assets.

BlackRock took swift action to stop the purchase any Russian securities immediately after the invasion. Cohen stated that BlackRock was monitoring both the indirect and direct effects of the crisis, and is working closely with its clients to help them take the appropriate investment actions.

The company will also be looking to expand its staff in Saudi Arabia, and the United Arab Emirates. BlackRock reports that the UAE has 44 and Saudi Arabia 15 employees.

BlackRock launched two Saudi Arabia-focused, exchange-traded funds. The kingdom was also advised to create a national infrastructure fund.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from relying on data including charts, buy/sell signals, and quotes. You should be aware of the potential risks and financial costs involved in trading the financial market. It is among the most dangerous investment options.

[ad_2]