Goldman Sachs Group Inc. is in the process of raising a Middle East-focused fund, hiring long-time JPMorgan Chase & Co. banker Habib Saikaly to spearhead the initiative. The fund aims to capitalize on the region’s growth and dynamism, aligning with Goldman’s strategic expansion in the Middle East.
Strategic Fundraising Effort
Goldman Sachs has engaged in discussions with regional investors to raise capital for an open-ended Middle East-focused fund. Although the final size of the fund is yet to be determined, the move marks a significant shift for the asset management giant, which has traditionally sought funds from the region to invest globally. Increasingly, pressure from sovereign wealth funds has prompted major players like Goldman Sachs to invest more within the region itself.
According to Bloomberg, sources familiar with the matter indicate that the fund’s development is a priority for the firm as it seeks to enhance its regional presence.
Leadership and Expansion
Habib Saikaly, a veteran with 13 years at JPMorgan, has been appointed to lead Goldman’s fundamental equity business across the Middle East and North Africa (MENA). Based in Riyadh, Saikaly will oversee the new fund’s development, reporting to Basak Yavuz and Hiren Dasani, co-heads of Goldman’s emerging market equity division.
We are continuing to expand our presence in Saudi Arabia across divisions. This reflects our ambition to provide a dedicated local service and bring investment opportunities to our global client base, capitalizing on the growth and dynamism across the MENA region.
Fadi Abuali, co-chief executive officer of Goldman’s MENA business
Regional Ambitions and Economic Reforms
Goldman Sachs’ push into the Middle East aligns with broader industry trends, as financial giants increasingly seek to deploy capital within the region. The firm’s recent efforts come on the heels of securing a license to establish regional headquarters in Saudi Arabia, making it the first Wall Street bank to achieve this milestone.
Saudi Arabia’s ambitious economic reform program has attracted significant interest from global banks. The kingdom’s initiatives aim to diversify its economy away from oil dependence, fostering growth in various sectors. Goldman Sachs and other major financial institutions are positioning themselves to take advantage of these opportunities by expanding their local operations and investment activities.
As Goldman Sachs continues to solidify its presence in the Middle East, the success of its new fund and leadership under Habib Saikaly will be crucial in driving the firm’s regional strategy. The fund represents not only a significant investment vehicle but also a strategic move to align with the evolving financial landscape in the MENA region.
