The tale begins in June 2018 when Saudi Crown Prince Mohammed bin Salman hosted a gathering at his opulent al-Salam Royal Palace in Jeddah. The invitees included Larry Fink, the renowned founder and director of BlackRock, often dubbed the “king of Wall Street.” This meeting, attended by approximately 150 international officials and financial moguls, appeared to position BlackRock as a strategic partner to solidify the prince’s ambitious economic agenda. Bin Salman’s vision aimed to transform Saudi Arabia into a global hub for major corporations and investors, mirroring Dubai’s trajectory. Larry Fink’s involvement seemingly aligned with this grand plan, setting the stage for a symbiotic collaboration.
However, the narrative took a drastic turn in October 2018 when the Saudi Crown Prince ordered the killing of journalist Jamal Khashoggi, sending shockwaves throughout the international community. This event deeply strained bin Salman’s relationships with prominent allies, including Larry Fink. While Fink denounced Khashoggi’s murder as “horrifying,” he refrained from severing ties with Saudi Arabia or bin Salman. This stance highlighted a complex predicament faced by Fink, reflecting the uneasy balance between ethical concerns and business interests.
In recent years, BlackRock and Saudi Arabia have rekindled their affiliation, signaling a strategic recalibration. A notable development occurred with the appointment of Amin Nasser, CEO of Saudi Aramco, the world’s largest oil company, to BlackRock’s board of directors in July 2023. This move underscored Fink’s strategic reliance on Saudi oil money, which, despite generating criticism from climate activists and the American left, has yielded substantial profits for BlackRock shareholders.
The appointment of Nasser reverberated through the financial world, attracting attention from both critics and supporters. While Fink’s alignment with the right-wing capitalist ideologies resonates, it draws ire from the left due to BlackRock’s association with fossil fuel enterprises that contribute to climate change. The company’s pragmatic stance appears driven by its profitable Saudi investments, prompting accusations of climate conflict. This decision didn’t escape the watchful eye of Brad Lander, overseeing New York City’s retirement fund, which manages a staggering $250 billion. Lander criticized BlackRock’s choice, stating, “BlackRock shareholders expect climate-competent, not climate-conflicted, directors.”
Amidst the tumultuous landscape, BlackRock and Saudi Arabia have forged robust partnerships. In November 2022, the Saudi Sovereign Wealth Fund and BlackRock signed a memorandum of understanding to explore infrastructure investment opportunities in the Middle East. This collaboration laid the foundation for BlackRock’s specialized infrastructure investment team in Riyadh, emphasizing sectors such as energy, utilities, transportation, and communications. Additionally, BlackRock’s strategic investments in Saudi stocks, amounting to $6.22 billion across various sectors, underscore the company’s commitment to the kingdom’s economic landscape.
At the heart of BlackRock’s Saudi strategy stands Larry Fink, a visionary architect shaping the company’s objectives in the kingdom. Fink’s interactions with bin Salman reveal a complex dance between maintaining ties and upholding business goals. Notably, Fink’s actions have demonstrated an intricate navigation of international alliances. In 2019, during Aramco’s $12 billion debt issuance, BlackRock played a substantial role. Fink’s endeavor to attract Middle Eastern sovereign wealth funds into BlackRock’s investor base was a testament to his strategic prowess. Moreover, Fink’s orchestration of new shareholders, including sovereign wealth funds, showcased his finesse in strengthening relationships despite external challenges.
Delving into the annals of financial history, Fink’s name is intertwined with the 2008 global financial crisis. As a pioneer of “securitization,” Fink’s strategies contributed to the economic turmoil that engulfed markets. BlackRock’s involvement in purchasing “toxic assets” further solidified its connection to the crisis. Toxic assets, collateral for struggling debts, bear stark parallels to the financial poison they were named after, causing systemic failures. BlackRock’s role in managing these assets during the crisis underscores the multifaceted role the company has played in global finance.
In the ever-shifting sands of international commerce and politics, the alliance between BlackRock and Saudi Arabia stands as a testament to the intricate web of interests that define modern economies. As BlackRock continues to navigate these complex ties, the spotlight shines on Larry Fink’s calculated moves and the broader consequences they carry. In the end, the evolving narrative between BlackRock and Saudi Arabia mirrors the delicate dance of interests and ethical considerations that characterize our interconnected world.
The intricate tapestry of international business and political alliances often weaves unexpected patterns, as exemplified by the relationship between American financial powerhouse BlackRock and Saudi Arabia, a dominant oil and financial empire. While BlackRock reigns as a titan in risk management and financial investments, the company’s entanglements with Saudi Arabia have sparked discomfort within the American left, igniting debates about the future course for both entities.
The tale begins in June 2018 when Saudi Crown Prince Mohammed bin Salman hosted a gathering at his opulent al-Salam Royal Palace in Jeddah. The invitees included Larry Fink, the renowned founder and director of BlackRock, often dubbed the “king of Wall Street.” This meeting, attended by approximately 150 international officials and financial moguls, appeared to position BlackRock as a strategic partner to solidify the prince’s ambitious economic agenda. Bin Salman’s vision aimed to transform Saudi Arabia into a global hub for major corporations and investors, mirroring Dubai’s trajectory. Larry Fink’s involvement seemingly aligned with this grand plan, setting the stage for a symbiotic collaboration.
However, the narrative took a drastic turn in October 2018 when the Saudi Crown Prince ordered the killing of journalist Jamal Khashoggi, sending shockwaves throughout the international community. This event deeply strained bin Salman’s relationships with prominent allies, including Larry Fink. While Fink denounced Khashoggi’s murder as “horrifying,” he refrained from severing ties with Saudi Arabia or bin Salman. This stance highlighted a complex predicament faced by Fink, reflecting the uneasy balance between ethical concerns and business interests.
In recent years, BlackRock and Saudi Arabia have rekindled their affiliation, signaling a strategic recalibration. A notable development occurred with the appointment of Amin Nasser, CEO of Saudi Aramco, the world’s largest oil company, to BlackRock’s board of directors in July 2023. This move underscored Fink’s strategic reliance on Saudi oil money, which, despite generating criticism from climate activists and the American left, has yielded substantial profits for BlackRock shareholders.
The appointment of Nasser reverberated through the financial world, attracting attention from both critics and supporters. While Fink’s alignment with the right-wing capitalist ideologies resonates, it draws ire from the left due to BlackRock’s association with fossil fuel enterprises that contribute to climate change. The company’s pragmatic stance appears driven by its profitable Saudi investments, prompting accusations of climate conflict. This decision didn’t escape the watchful eye of Brad Lander, overseeing New York City’s retirement fund, which manages a staggering $250 billion. Lander criticized BlackRock’s choice, stating, “BlackRock shareholders expect climate-competent, not climate-conflicted, directors.”
Amidst the tumultuous landscape, BlackRock and Saudi Arabia have forged robust partnerships. In November 2022, the Saudi Sovereign Wealth Fund and BlackRock signed a memorandum of understanding to explore infrastructure investment opportunities in the Middle East. This collaboration laid the foundation for BlackRock’s specialized infrastructure investment team in Riyadh, emphasizing sectors such as energy, utilities, transportation, and communications. Additionally, BlackRock’s strategic investments in Saudi stocks, amounting to $6.22 billion across various sectors, underscore the company’s commitment to the kingdom’s economic landscape.
At the heart of BlackRock’s Saudi strategy stands Larry Fink, a visionary architect shaping the company’s objectives in the kingdom. Fink’s interactions with bin Salman reveal a complex dance between maintaining ties and upholding business goals. Notably, Fink’s actions have demonstrated an intricate navigation of international alliances. In 2019, during Aramco’s $12 billion debt issuance, BlackRock played a substantial role. Fink’s endeavor to attract Middle Eastern sovereign wealth funds into BlackRock’s investor base was a testament to his strategic prowess. Moreover, Fink’s orchestration of new shareholders, including sovereign wealth funds, showcased his finesse in strengthening relationships despite external challenges.
Fink’s name is intertwined with the 2008 global financial crisis. As a pioneer of “securitization,” Fink’s strategies contributed to the economic turmoil that engulfed markets. BlackRock’s involvement in purchasing “toxic assets” further solidified its connection to the crisis. Toxic assets, collateral for struggling debts, bear stark parallels to the financial poison they were named after, causing systemic failures. BlackRock’s role in managing these assets during the crisis underscores the multifaceted role the company has played in global finance.
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