Saudi Arabia’s Public Investment Fund (PIF) has partnered with Brookfield Asset Management to become a strategic anchor investor in Brookfield’s new private equity vehicle, Brookfield Middle East Partners. This collaboration aims to enhance investment opportunities within the region.
The investment platform will focus on buyouts, structured solutions, and other opportunities in various strategic sectors such as industrial, business, consumer services, technology, and healthcare. At least half of the fund’s capital will be directed towards projects within Saudi Arabia, as well as international companies looking to establish a presence in the kingdom. This strategy is designed to boost foreign direct investment.
Announced during the Future Investment Initiative (FII) forum in Riyadh, the partnership seeks to combine the strengths of both PIF and Brookfield to support local economic development. Yazeed A. Al-Humied from PIF emphasized that this agreement is part of their effort to attract global capital and expertise to the region.
Brookfield, which manages around $1 trillion in assets globally, will expand its Riyadh office and introduce its Brookfield Academy in Saudi Arabia to promote knowledge-sharing and talent development. This partnership is part of a broader trend of foreign firms raising funds focused on the Middle East, with entities like Goldman Sachs and BlackRock also engaging in similar ventures.
The newly established BlackRock Riyadh Investment Management will receive additional investments from both local and international sources, aiming to boost Saudi Arabia’s capital markets by encouraging foreign institutional investment.
PIF, guided by Crown Prince Mohammed bin Salman’s Vision 2030, is reducing its overseas investments to focus more on domestic resources. This shift is part of a broader strategy to diversify the Saudi economy away from oil dependency.
