PIF and Brookfield investment partnership targets private equity in Saudi Arabia and MENA region

In a landmark move to amplify investment opportunities in Saudi Arabia and the broader Middle East, the Public Investment Fund (PIF) of Saudi Arabia and Brookfield Asset Management Ltd. signed a non-binding memorandum of understanding (MoU) at the ongoing Future Investment Initiative (FII) summit in Riyadh. This partnership establishes a $2 billion investment platform, Brookfield Middle East Partners (BMEP), with PIF as a strategic anchor investor, aiming to catalyse economic development and private equity growth within the Kingdom and the surrounding region.

The BMEP platform will channel capital into a diverse range of sectors, including industrials, consumer and business services, technology, and healthcare. A significant portion of the capital, at least 50 per cent, will target investments within Saudi Arabia, particularly in companies looking to expand locally, aligning with the Kingdom’s vision of becoming a global hub for investment and economic dynamism.

With this MoU, the two entities seek to leverage their combined expertise to promote private equity opportunities in Saudi Arabia, bolstering foreign direct investment (FDI) and driving local economic development. Yazeed A. Al-Humied, PIF’s deputy governor and head of MENA investments, underscored the significance of the collaboration, noting, “PIF’s collaboration with Brookfield demonstrates our continued efforts to foster international partnerships that enhance local markets.” He emphasised the alignment with PIF’s broader mission to attract global capital and knowledge into Saudi Arabia, facilitating capacity-building and skill transfer locally.

The partnership marks a substantial contribution to Saudi Arabia’s ambitious Vision 2030 agenda, a framework aimed at economic diversification and sustainable development. Since 2017, PIF has been integral to this transformation, having established 95 companies and created over 1.1 million direct and indirect jobs globally.

Brookfield Asset Management CEO Bruce Flatt expressed enthusiasm for the partnership, highlighting Saudi Arabia’s pivotal role in the region’s economic shift. “We are honoured to partner with PIF on this landmark private equity fund. Saudi Arabia is core to the region’s economic transformation, and we look forward to contributing to its growth by investing at scale in market-leading companies,” Flatt said.

Brookfield, a key player in the Gulf Cooperation Council (GCC) investment landscape since 1997, has invested directly across the region’s sectors since 2015. With a substantial portfolio valued at $12 billion, encompassing private equity, real estate, and infrastructure, Brookfield has built a reputation for fostering long-term partnerships with leading institutions in the GCC. The company will expand its Riyadh office as part of the MoU, further establishing its commitment to the region’s development.

In addition to expanding its operations in Saudi Arabia, Brookfield plans to make its Brookfield Academy, a training programme for investment professionals, available locally. This initiative aims to enhance skill development in the Kingdom, contributing to PIF’s goal of nurturing local talent and further embedding global expertise in the Saudi market.

While the MoU remains non-binding and subject to regulatory and internal approvals, it marks a critical step in advancing PIF’s objectives of global capital attraction and establishing Saudi Arabia as a key investment destination. The collaborative venture is set to shape the future of private equity in the region, bolstering Saudi Arabia’s appeal to international investors and reinforcing its role as a leader in regional economic transformation.