Saudi Investments: PIF And Brookfield Team Up For $2bn Spending Boost

The two finance giants have signed a non-binding memorandum of understanding (MoU) for PIF to act as a strategic anchor investor for Brookfield Middle East Partners (BMEP), a new platform which aims to serve as Brookfield’s new private equity vehicle for investments in businesses based in Saudi Arabia and the wider region.

The MoU was signed during the 8th edition of the Future Investment Initiative conference in Riyadh.

PIF and Brookfield eye Saudi investments

BMEP will target $2bn from a variety of investors and intends to target buyouts, structured solutions and investment opportunities across a range of strategic sectors, including:

• Industrial services
• Business services
• Consumer services
• Technology
• Healthcare

At least 50 per cent of the capital will be allocated to investments in Saudi Arabia and to leading international companies looking to expand in the local market, unlocking foreign direct investment into Saudi Arabia.

The partnership aims to leverage the relative strengths of PIF and Brookfield to further local private equity investment opportunities and foster economic development in Saudi Arabia, and further advance Saudi Arabia’s strategy to position itself as a leading hub for global investment and economic growth.

Deputy Governor and head of MENA Investments at PIF Yazeed A. Al-Humied said: “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.”

Meanwhile, Brookfield Asset Management CEO Bruce Flatt said: “We are honoured 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.

“With our expanding presence in Riyadh, we are excited to bring our global expertise to participate in the development of the local private-markets ecosystem.”

Brookfield will also expand its office in Riyadh and make Brookfield Academy available locally. Founded in 2019, the Brookfield Academy provides interactive learning opportunities for Brookfield partners’ professionals, facilitating knowledge sharing and talent development, supporting PIF’s goals of developing local investment capabilities.

PIF is playing a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as driving global economies and shaping the future of industries. Locally, since 2017, PIF has created 95 new companies, and globally it has created over 1.1m direct and indirect jobs.

Brookfield is one of the largest foreign direct investors in the GCC. Active in the region since 1997, and directly investing since 2015, Brookfield has built a portfolio of over $12bn of managed assets across private equity, real estate and infrastructure.

With a substantial local presence, Brookfield has taken a differentiated approach to building its business in the region, focusing on building long-term partnerships with leading local institutions.

The non-binding MoU is subject to satisfying certain necessary conditions including obtaining all necessary regulatory and internal approvals, and fulfilling specified milestones.