BNP Paribas, Saudi Bank Sign Joint Venture

Tom Burroughes

20 March 2008

BNP Paribas Investment Partners, part of French bank BNP Paribas, and The Saudi Investment Bank have formed a new asset management venture in Saudi Arabia called SAIB BNP Paribas Asset Management. The deal means BNPP IP will take, through its BNP PAM Group holding company, a 25 per cent stake in the capital of SAIB Asset Management Company, according to a joint statement by the companies. They did not disclose the financial size of the agreement, which is subject to regulatory approval. The deal is expected to be completed “within a few months”, the statement said. SAIB Asset Management company manages about $2.2 billion of assets. BNP IP manages over $56 billion of assets in emerging markets through joint ventures in nations such as Argentina, China, India and Turkey. Gilles Glicenstein, head of BNPP IP, said: "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 joint venture will benefit greatly from BNPP IP's sales force in the region, with offices in Bahrain and Kuwait, and will leverage BNPP IP's international presence in over 30 countries,” he added.