BlackRock CEO Larry Fink said that vast sums of capital—worth tens of trillions of dollars—are being held in cash, as market uncertainty fueled by trade tensions and U.S. fiscal concerns keeps investors on the sidelines.
“There are €12 trillion sitting in European bank accounts and $11 trillion in U.S. money market funds,” Fink said Tuesday at the Saudi-U.S. Investment Forum in Riyadh. “When uncertainty rises, investors retreat to cash—and that’s exactly what we’re seeing.”
Fink’s remarks came just after U.S. President Donald Trump arrived in Saudi Arabia to begin a four-day Middle East tour, with stops planned in Qatar and the UAE. The visit focuses on striking economic agreements and navigating regional security challenges, including the war in Gaza and tensions surrounding Iran’s nuclear ambitions.
Fink, who leads the world’s largest asset management firm, noted that while global investors are still heavily exposed to U.S. markets, some capital has been reallocated toward Europe and fast-growing regions like the Gulf, India, and Japan due to concerns over Trump’s evolving global trade policies.
However, he cautioned that the current stability is fragile, especially with another 90 days of market volatility looming after Trump’s temporary suspension of tariffs in the ongoing trade dispute with China.
“We’re entering a phase of uncertainty, and I expect deficits to come under increased scrutiny—something that hasn’t really been part of the discussion so far,” Fink said. He was joined at the forum by U.S. Treasury Secretary Scott Bessent, Saudi Finance Minister Mohammed Al Jadaan, and Investment Minister Khalid al-Falih.
Fink added that the U.S. must achieve a sustained 3% growth rate to manage its growing deficits and commended President Trump’s approach for aligning with Saudi Arabia’s own efforts to spur public-private investment.
He also praised the Vision 2030 reform plan spearheaded by Crown Prince Mohammed bin Salman, calling it a serious attempt to diversify Saudi Arabia’s oil-dependent economy and position the kingdom as a global economic leader.
Still, with oil prices lower and development costs rising, some of the plan’s more ambitious projects—such as the high-tech desert city NEOM—have been scaled back in favor of initiatives that will support the hosting of major international sporting events.
Stephen Schwarzman, CEO of private equity giant Blackstone, acknowledged the challenges facing Vision 2030 but encouraged Saudi officials not to lose momentum. “With any ambitious vision, some things won’t happen. But that’s part of transformative change—you can’t get discouraged,” he said at the event.
