Saudi Arabia's PIF signs $5b deal with Franklin Templeton to boost Kingdom's financial market investments

Dubai: Saudi Arabia’s Public Investment Fund (PIF) have signed a non-binding memorandum of understanding (MoU) with Franklin Templeton Financial Company to invest up to $5 billion in the Kingdom’s financial markets.

The agreement outlines plans to collaborate on a range of investment strategies across public and private markets, including Saudi equities and fixed income instruments. The initiative is intended to broaden the scope of investment opportunities for both domestic and international investors.

The MoU forms part of PIF’s ongoing strategy to attract global financial partners and deepen the development of Saudi Arabia’s capital markets, in line with its wider economic diversification goals. It also reflects efforts to position the Kingdom as a hub for international asset management.

As part of the agreement, Franklin Templeton is expected to contribute to local talent development and knowledge transfer through asset management programs and innovation initiatives. The firm, headquartered in California, has operated in the Middle East for 25 years and established its Riyadh office in 2024. It currently offers investment services in areas such as fixed income, private credit, sukuk, and regional equities.

While the MoU signals intent, it remains subject to regulatory and internal approvals, as well as the fulfillment of certain conditions.

Franklin Templeton manages approximately $1.53 trillion in assets globally as of April 2025.