Brookfield fund targets 50% of investments in Saudi Arabia with PIF backing

RIYADH — Brookfield Middle East Partners (BMEP) plans to allocate at least 50% of its capital for investments within Saudi Arabia, supported by the Public Investment Fund (PIF) as a strategic anchor investor.

This initiative was formalized through a non-binding memorandum of understanding (MoU) signed during the 8th edition of the Future Investment Initiative in Riyadh.

BMEP aims to raise $2 billion from various investors, focusing on buyouts, structured solutions, and investment opportunities across key sectors including industrials, business and consumer services, technology, and healthcare.

By prioritizing investments in Saudi Arabia, the fund aims to facilitate foreign direct investment into the Kingdom and support international companies looking to expand their operations locally.

Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, highlighted the significance of the collaboration, stating, “PIF’s partnership with Brookfield demonstrates our commitment to fostering international relationships that enhance local markets. This MoU is a step toward realizing 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 excitement about the partnership, saying, “We are honored to collaborate with PIF on this landmark private equity fund. Saudi Arabia is central 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.”

In addition to the fund, Brookfield is set to expand its office in Riyadh and will make the Brookfield Academy available locally. This academy, established in 2019, provides interactive learning opportunities for professionals and will help support knowledge-sharing and talent development in line with PIF’s goals.

PIF plays a crucial role in advancing Saudi Arabia’s economic transformation and diversification efforts, having created 95 new companies locally since 2017 and generating over 1.1 million direct and indirect jobs globally.

The MoU is subject to meeting necessary conditions, including obtaining regulatory approvals and fulfilling specified milestones. — SG