On October 30, 2024, in Riyadh, the Public Investment Fund (PIF) and Brookfield Asset Management Ltd. formalized a non-binding memorandum of understanding (MoU) that positions PIF as a strategic anchor investor for Brookfield Middle East Partners (BMEP). This new platform aims to serve as Brookfield’s dedicated private equity vehicle for making investments in businesses located in Saudi Arabia and the broader Middle East region. The MoU was signed during the 8th edition of the Future Investment Initiative conference, highlighting the ongoing collaboration and investment opportunities in the Kingdom.
According to the press release, BMEP is targeting an ambitious $2 billion from various investors, focusing on buyouts, structured solutions, and investment opportunities across key strategic sectors such as industrial, business and consumer services, technology, and healthcare. Notably, at least 50% of the capital raised will be allocated to investments within Saudi Arabia, as well as to prominent international companies looking to establish or expand their operations in the local market. This strategic move is expected to unlock foreign direct investment into the Kingdom.
The partnership aims to capitalize on the complementary strengths of PIF and Brookfield to enhance local private equity investment opportunities and stimulate economic development in Saudi Arabia. This collaboration aligns with Saudi Arabia's strategic vision to position itself as a leading hub for global investment and economic growth.
Yazeed A. Al-Humied, Deputy Governor and head of MENA Investments at PIF, remarked, “PIF’s collaboration with Brookfield demonstrates our continued efforts to foster international partnerships that enhance local markets. This MoU represents a step toward achieving PIF’s vision of attracting global capital and expertise to the region while facilitating knowledge transfer and capacity building within Saudi Arabia.”
Bruce Flatt, CEO of Brookfield Asset Management, expressed enthusiasm about the partnership, stating, “We are honored to partner with PIF in 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 that will benefit from our deep operating capabilities.” Brookfield also plans to expand its office in Riyadh and make Brookfield Academy available locally. Founded in 2019, the Brookfield Academy provides interactive learning opportunities for professionals, promoting knowledge sharing and talent development that supports PIF’s goals of enhancing local investment capabilities.
PIF plays a pivotal role in advancing Saudi Arabia’s economic transformation and diversification efforts. Since 2017, it has established 95 new companies and has contributed to the creation of over 1.1 million direct and indirect jobs globally. Brookfield, recognized as one of the largest foreign direct investors in the Gulf Cooperation Council (GCC) region, has been active in the area since 1997 and has built a robust portfolio of over $12 billion in managed assets across private equity, real estate, and infrastructure.
The MoU signed today is subject to meeting certain necessary conditions, including obtaining all requisite regulatory and internal approvals, as well as fulfilling specified milestones.On October 30, 2024, in Riyadh, the Public Investment Fund (PIF) and Brookfield Asset Management Ltd. formalized a non-binding memorandum of understanding (MoU) that positions PIF as a strategic anchor investor for Brookfield Middle East Partners (BMEP). This new platform aims to serve as Brookfield’s dedicated private equity vehicle for making investments in businesses located in Saudi Arabia and the broader Middle East region. The MoU was signed during the 8th edition of the Future Investment Initiative conference, highlighting the ongoing collaboration and investment opportunities in the Kingdom.
According to the press release, BMEP is targeting an ambitious $2 billion from various investors, focusing on buyouts, structured solutions, and investment opportunities across key strategic sectors such as industrial, business and consumer services, technology, and healthcare. Notably, at least 50% of the capital raised will be allocated to investments within Saudi Arabia, as well as to prominent international companies looking to establish or expand their operations in the local market. This strategic move is expected to unlock foreign direct investment into the Kingdom.
The partnership aims to capitalize on the complementary strengths of PIF and Brookfield to enhance local private equity investment opportunities and stimulate economic development in Saudi Arabia. This collaboration aligns with Saudi Arabia's strategic vision to position itself as a leading hub for global investment and economic growth.
Yazeed A. Al-Humied, Deputy Governor and head of MENA Investments at PIF, remarked, “PIF’s collaboration with Brookfield demonstrates our continued efforts to foster international partnerships that enhance local markets. This MoU represents a step toward achieving PIF’s vision of attracting global capital and expertise to the region while facilitating knowledge transfer and capacity building within Saudi Arabia.”
Bruce Flatt, CEO of Brookfield Asset Management, expressed enthusiasm about the partnership, stating, “We are honored to partner with PIF in 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 that will benefit from our deep operating capabilities.” Brookfield also plans to expand its office in Riyadh and make Brookfield Academy available locally. Founded in 2019, the Brookfield Academy provides interactive learning opportunities for professionals, promoting knowledge sharing and talent development that supports PIF’s goals of enhancing local investment capabilities.
PIF plays a pivotal role in advancing Saudi Arabia’s economic transformation and diversification efforts. Since 2017, it has established 95 new companies and has contributed to the creation of over 1.1 million direct and indirect jobs globally. Brookfield, recognized as one of the largest foreign direct investors in the Gulf Cooperation Council (GCC) region, has been active in the area since 1997 and has built a robust portfolio of over $12 billion in managed assets across private equity, real estate, and infrastructure.
The MoU signed today is subject to meeting certain necessary conditions, including obtaining all requisite regulatory and internal approvals, as well as fulfilling specified milestones.