Bear Stearns announced today that it is planning to launch as asset management joint venture in Saudi Arabia.

The firm reported that it has signed a letter of intent with a consortium of Saudi business leaders led by HH Prince Mishaal Bin Abdullah Bin Turki Al-Saud of Zad Investment Company to form Bear Stearns Arabia Asset Management. The new venture will be a Saudi-registered asset management company, with headquarters in Riyadh, serving institutions and high-net-worth individuals in Saudi Arabia. BSAAM will develop and distribute shariah-compliant and other investment products. It will also leverage Bear Stearns Asset Management’s platform, offering traditional equity and fixed income, hedge fund and private equity fund products.

Bear Stearns will own a 50% stake in BSAAM, which will be the firm’s first permanent business in the region. It plans to build an international team of individuals who have vast experience in asset management and local knowledge. Prince Mishaal A.T. Al-Saud will be the chairman of BSAAM and both Michel Péretié, CEO of Bear Stearns International Limited, and Christian Yates, head of International for Bear Stearns Asset Management, will be on the board of directors.

“Bear Stearns Arabia Asset Management will combine world-class asset management expertise with a deep knowledge of the investment needs and preferences of large investors in the Kingdom and the Gulf,” said Prince Mishaal A.T. Al-Saud, in a release. “This is an exciting time in the economic development of our region, and Bear Stearns Arabia Asset Management will be a leader in offering innovative, high quality, locally-focused shariah-compliant investment products, in addition to the ‘best in class’ from the rest of the world.”

Ihab El-Hashani, a senior investment advisor to the consortium who will also be a member of the BSAAM board, added, “The joint venture will offer structured products that will match the increasing demand and sophistication of institutional and high-net-worth customers in this part of the world.”

Richard Marin, chairman and CEO of Bear Stearns Asset Management, commented, “We are excited at the prospect of working together with our Saudi partners to build a world-class Saudi Arabia-based asset management company. Our goal is to be the leading independent asset manager in Saudi Arabia and a global leader in shariah-compliant investment products.”