Saudi Arabia's sovereign wealth fund, the Public Investment Fund, Wednesday announced it has struck multi-billion deals with U.S.-based asset management giants Franklin Templeton and Neuberger Berman.

The partnerships underscore a deepening alignment between Western financial giants and Gulf sovereign wealth funds, as both seek to capitalize on trillion-dollar opportunities in emerging technologies, finance, and cross-border capital flows.

Franklin Templeton said it has signed a non-binding memorandum of understanding (MoU) to partner in investing up to $5 billion to further develop Saudi Arabia’s financial markets.

Neuberger Berman has also agreed to a similar deal to invest up to $6 billion in the kingdom, and to launch a Riyadh-based multi-asset investment management platform.

Saudi Arabia's PIF, one of the world's largest sovereign wealth funds with over $900 billion in assets, sits at the heart of Crown Prince Mohammed bin Salman’s economic transformation agenda.

The announcement comes during U.S. President Donald Trump’s four-day tour of the Gulf, which has featured elaborate ceremonies and a wave of business agreements, including Saudi Arabia’s $600 billion investment pledge in the United States and $142 billion in arms deals.

Saudi Arabia is in a race to secure more outside money to keep ambitious plans to diversify its economy on track. The country set itself a lofty target to attract $100 billion in annual foreign direct investment by the turn of the decade.

Riyadh has taken steps to try to encourage foreign firms to invest more in the country. The government in 2021, for example, said companies seeking to secure state contracts must set up their regional headquarters in Saudi Arabia.

PIF has been increasing its focus on domestic investment as part of its commitment to the country's economic transformation plans.

Separately, infrastructure investment manager I Squared Capital said on Wednesday it has signed a MoU with PIF to establish a dedicated infrastructure investment strategy focused on the Middle East.