Global Asset Manager Targets Saudi Market as Regional Investment Rises
Janus Henderson Group Plc (NYSE: JHG) is looking to expand its presence in Saudi Arabia, as the global asset management firm seeks to capitalize on growing investment opportunities in the Middle East. With an increasing number of institutional investors, sovereign wealth funds, and family offices in the region, Janus Henderson aims to strengthen its footprint by establishing a potential office in Riyadh, aligning with its regional growth strategy.
The move comes as Saudi Arabia continues to attract global financial institutions, including Goldman Sachs, BlackRock, and State Street Corp., all of which are expanding their presence in the kingdom as part of Vision 2030, the Saudi government’s ambitious plan to diversify its economy away from oil dependence.
Janus Henderson’s Expansion Strategy in Saudi Arabia
CEO Ali Dibadj Confirms Interest in the Kingdom
Speaking in Riyadh, Janus Henderson CEO Ali Dibadj confirmed that the firm is actively exploring ways to expand in Saudi Arabia, stating that opening a physical office in the kingdom is a “likely outcome”, though no final decision has been made.
To lead the firm’s regional investment initiatives, Janus Henderson has appointed Saudi national Baraa Amir as Executive Director for the Middle East and Africa. His role will involve building relationships with local investors and laying the groundwork for increased investment in Saudi Arabia.
“We’re looking to expand for sure because we see a lot of opportunity,” Dibadj said. “We are very focused on investing locally.”
Current Middle East Investment Portfolio
Janus Henderson already manages assets worth “low double-digit billions of dollars” for clients in the Middle East, including sovereign wealth funds and family offices. The firm currently has offices in the United Arab Emirates (UAE) and has been expanding its private capital division, particularly in emerging markets.
Last year, Janus Henderson acquired the private investments team of Kuwait’s largest bank, further solidifying its commitment to Middle Eastern markets.
Saudi Arabia’s Growing Appeal to Global Investors
Major Wall Street Firms Establishing Regional Headquarters
Janus Henderson’s interest in Saudi Arabia follows a broader trend of global asset managers and investment firms moving into the region. Some of the biggest names in finance have recently made significant inroads into Riyadh, including:
- Goldman Sachs Group Inc. – Expanding regional presence in Saudi Arabia
- BlackRock Inc. – Increasing investments in local infrastructure and technology projects
- State Street Corp. – Planning to launch more Saudi bond ETFs to attract investors to local debt markets
With the Saudi Public Investment Fund (PIF) managing over $700 billion and actively investing in both domestic and international markets, global firms are eager to tap into the kingdom’s deep capital reserves.
Janus Henderson’s Strength in Collateralized Loan Obligations (CLOs)
Rising Demand for Fixed-Income Investments
Janus Henderson has been capitalizing on the rising demand for fixed-income investments, particularly collateralized loan obligations (CLOs). The firm has benefited from a wave of institutional investors looking for easier ways to gain exposure to European and U.S. CLO markets, which now exceed $1 trillion globally.
Recent ETF Launches in CLOs
In response to market demand, Janus Henderson launched a CLO-focused exchange-traded fund (ETF) in Europe last month, following the lead of rival Fair Oaks Capital, which was the first to introduce such an ETF. Invesco Ltd. has also recently entered the market, highlighting growing interest in structured credit investments.
Saudi Arabia’s Potential in the CLO Market
Dibadj suggested that the Middle East could benefit from increased access to structured credit investments like CLOs. He highlighted the transportability of the investment structure, saying:
“This region can certainly get the benefit. Asia can get the benefit. So absolutely, yes, there will be more.”
As clients show increasing interest in fixed-income investments, Janus Henderson sees an opportunity to expand its structured credit offerings in the Middle East.
Broader Trends in the Middle East Asset Management Sector
Saudi Arabia’s Vision 2030 and Economic Diversification
Saudi Arabia’s Vision 2030 plan is driving economic transformation, creating new opportunities for asset managers looking to deploy capital into technology, infrastructure, real estate, and alternative investments. Key initiatives include:
- Saudi Arabia’s $500 billion NEOM project – A futuristic smart city attracting international investments
- Expansion of financial markets – The Saudi Exchange (Tadawul) has seen increased IPO activity, providing liquidity and investment opportunities
- Incentives for foreign investors – The Saudi government is actively encouraging foreign firms to set up regional headquarters in Riyadh
Increased Institutional and Sovereign Wealth Fund Investments
Sovereign wealth funds in the Middle East, including the Saudi Public Investment Fund (PIF), Abu Dhabi Investment Authority (ADIA), and Kuwait Investment Authority (KIA), are deploying significant capital into international markets while also seeking foreign investors for local projects.
Challenges and Opportunities for Janus Henderson in the Region
Challenges
🔹 Regulatory Environment – While Saudi Arabia has opened up its markets, navigating local financial regulations remains a challenge.
🔹 Competition – Major financial firms such as BlackRock, Goldman Sachs, and State Street are already well-established in the region.
🔹 Geopolitical Risks – Economic policies and geopolitical developments in the region could impact investor sentiment.
Opportunities
✅ Growing Institutional Investment – The Middle East’s wealth funds continue to seek global asset managers for diversified investment strategies.
✅ High Demand for Fixed-Income Products – Janus Henderson’s CLO offerings could gain traction among Middle Eastern investors.
✅ Saudi Market Growth – The kingdom’s rapid economic expansion presents significant investment opportunities in infrastructure, fintech, and alternative assets.
Conclusion: A Strategic Move for Janus Henderson
Janus Henderson’s potential expansion into Saudi Arabia underscores its commitment to growing its presence in the Middle East. With trillions of dollars in sovereign wealth funds, a booming fixed-income investment sector, and Saudi Arabia’s push to attract global financial firms, the kingdom presents a lucrative opportunity for asset managers.
As the global financial industry shifts focus toward emerging markets, Janus Henderson’s entry into Saudi Arabia could pave the way for new investment opportunities, strategic partnerships, and long-term growth in the region.
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