Investment firm Edmond de Rothschild has established a unique infrastructure debt strategy in Saudi Arabia and the signing of a contract with Saudi asset manager SNB Capital.
Additionally, Edmond de Rothschild will be partnering with Watar Partners, an independent financial services company, to create a presence in Saudi Arabia.
Edmond de Rothschild’s infrastructure loan division, which manages over €5bn, is a prominent participant in Europe, while Watar Partners provides local advisory services to Saudi clients.
The firm intends to launch a new infrastructure debt fund platform in Saudi Arabia to provide funding for projects related to the Vision 2030 initiative of the nation.
This investment platform will be structured in conjunction with SNB Capital and provide supplementary liquidity to current equity and senior debt instruments.
SNB Capital provides extensive understanding of the region’s multi-trillion-dollar infrastructure effort as well as its funding requirements.
A joint venture with Watar Partners aims to increase local presence. The joint venture, which is scheduled to launch in the second half of 2024, will concentrate on giving Saudi family offices and institutional investors infrastructure debt consulting services as well as infrastructure financing solutions.
In the second half of 2024, a local office is scheduled to open in Riyadh, and local personnel will be employed.
The acquisition of the necessary licenses and regulatory approvals is essential for the joint venture’s formation and the strategy’s implementation.
Ariane de Rothschild, CEO of Edmond de Rothschild, commented: “I am extremely pleased to establish a presence for Edmond de Rothschild in the Kingdom of Saudi Arabia through this partnership with SNB Capital and Watar Partners. This is a logical next step for our group, building on the longstanding business relationships we have with the country. Edmond de Rothschild brings an excellent track record in infrastructure debt in Europe. I am confident that this expertise will benefit the realisation of the Vision 2030 programme, which aligns perfectly with our mission to foster sustainable growth and development built around strong roots and heritage. We look forward to contributing to the country’s future infrastructure development and growing a long-term presence to serve this important market.”
Rashed Sharif, CEO of SNB Capital, commented: “We are delighted to collaborate with Edmond de Rothschild as the investment house deepens its relationship with Saudi Arabia. As the largest asset manager in the Kingdom and the Middle East, SNB Capital is poised to unlock growth opportunities in the infrastructure space spanning from transportation to renewable energy, and we are confident that we will drive sustainable impact and create a local growth engine supporting Vision 2030’s ambitious goals. Strategic international relationships that enable us to further play our role in fostering financial innovation and solutions are core to our strategic objectives and we value partners who share our vision to achieve enduring market development.”
Abdulwahab Al-Betairi, managing partner at Watar Partners, added: ”We are extremely pleased to be partnering up with one of Europe’s most famous financial franchises. Edmond de Rothschild is a name that comes with a lot of reputation and heritage, as well as sophisticated investment expertise. I am firmly convinced that Edmond de Rothschild will provide the expertise and experience we need to meet the plans of the Kingdom of Saudi Arabia’s Vision 2030 goals.”