Shares in asset manager BlackRock (BLK) were higher today as it gets set to double or even triple its investment in the kingdom of Saudi Arabia and the wider Middle East.
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Taking Advantage of AI
The company, which currently holds over $35 billion in investments in Saudi Arabia spanning equities, fixed income and infrastructure, is aiming to take advantage of growth in key sectors such as artificial intelligence.
The focus includes expanding transportation and digital infrastructure, aligning with Saudi Arabia’s ambitious projects such as new airports and data centers.
According to Grand View Research, the Saudi Arabian AI market was valued at $6.76 billion in 2024 and is projected to grow at a compound annual growth rate of 43.1% between now and 2030. An influx of investments in developing AI solutions and technology adoption across the financial, healthcare, manufacturing, and automotive sectors will “bring a paradigm shift in the regional landscape.”
Kashif Riaz, who heads BlackRock’s financial markets advisory business in the Middle East as well as its Saudi-based investment management platform through Humain, the government-backed AI startup said: “The bulk of capital deployment has been in energy infrastructure, but I think that’ll broaden to transportation, things around digital infrastructure and data centers,” Riaz told Bloomberg.
Trump Has the Hots for Saudi
BlackRock opened its first office in the Middle East in 2009, establishing its Riyadh, Saudi office in 2019. It also has locations in Dubai, Abu Dhabi, Doha, and Kuwait. According to its website, BlackRock has $128 billion in assets under management for clients in the Middle East. However, as seen below, its revenue contribution trails other key areas such as the U.S. and Europe.
Saudi Arabia is currently hot property in the U.S.
Back in May, during a state visit by President Trump, the U.S. secured $600 billion in Saudi AI deals. AMD (AMD), for example, announced a $10 billion partnership with Humain to help build a next-generation AI cloud computing platform. The deal includes hardware, software, and infrastructure, with plans to power up to 500 megawatts of AI processing capacity—enough to rival the world’s largest data centers.
Earlier this month, Trump said the U.S. would sell F-35 fighter jets to Saudi Arabia, offering Crown Prince Mohammed bin Salman a prize he’s long cherished and a boost to defense stocks like Lockheed Martin (LMT).
Is BLK a Good Stock to Buy Now?
On TipRanks, BLK has a Strong Buy consensus based on 11 Buy and 1 Hold ratings. Its highest price target is $1,486. BLK stock’s consensus price target is $1,355.91, implying a 32.19% upside.
