TLDR:
Saudi Arabia’s PIF anchors Brookfield fund
Fund to target local investments
Brookfield expanding presence in Riyadh
RIYADH (The Thursday Times) — Saudi Arabia’s Public Investment Fund (PIF) has become the anchor for a significant $2 billion Brookfield fund, aiming to focus on economic development within the kingdom and the broader Middle East region. This investment aligns with Saudi Arabia’s vision to fortify its position as a major economic centre while enhancing its domestic investment landscape through strategic private equity ventures.
The new fund, Brookfield Middle East Partners (BMEP), represents a significant expansion in Brookfield’s private equity footprint across the region, providing capital to support a range of local sectors. This will include buyouts, structured investments, and various growth initiatives across industries like technology, industrials, business and consumer services, and healthcare. Notably, half of the fund’s assets are allocated to projects and companies based within Saudi Arabia, as part of a broader move by PIF to recalibrate its international investment strategy, shifting a greater focus toward domestic growth.
Targeting a diverse range of sectors
The investment will focus on key regional industries pivotal to Saudi Arabia’s economic transformation goals. Industrial sectors, such as manufacturing and advanced business services, will benefit from BMEP’s allocation, fostering expansion within Saudi Arabia’s fast-growing private sector. Technology and healthcare, both of which are integral to the Vision 2030 agenda, are likewise expected to draw substantial funding. This strategic diversification within the fund’s portfolio is tailored to meet the evolving needs of the kingdom’s domestic market, while bolstering new opportunities for private equity in the Middle East.
Brookfield’s growing presence in the Middle East
Brookfield’s deepening investment ties to Saudi Arabia are not new; the firm has held an established presence in the kingdom since 2015 and operates extensively from its base at ICD Brookfield Place in Dubai’s DIFC. Brookfield’s planned expansion in Riyadh is a significant step in solidifying its on-ground footprint within the kingdom and catering directly to local investment needs. In addition, Brookfield Academy, an interactive learning initiative, will be launched in Riyadh, offering locally relevant training and resources, which aligns with PIF’s ambition to create sustainable long-term economic gains for Saudi nationals.
A recalibration in global investment
This substantial domestic allocation reflects PIF’s broader move toward restructuring its international investment strategy, focusing on assets within the region. The Saudi fund recently announced a shift that, while maintaining its overall international dollar holdings, will prioritise domestic growth. This recalibration aims to align PIF’s objectives with Saudi Arabia’s national development agenda, providing a robust foundation for advancing domestic capital markets and creating new economic opportunities.
