Saudi PIF's $2 Billion Brookfield Middle East Deal: A Boon for Local Investment

Saudi Arabia's Public Investment Fund (PIF) has announced a significant $2 billion deal with Brookfield Asset Management to establish a new Middle East-focused private equity platform, Brookfield Middle East Partners (BMEP). This strategic partnership aligns with PIF's domestic investment focus and Saudi Arabia's Vision 2030, aiming to foster economic development and attract global investment. The fund will target buyouts, structured solutions, and other investments across industrials, business and consumer services, technology, and healthcare, with at least half of the capital allocated within Saudi Arabia.


This deal underscores PIF's commitment to domestic growth and economic diversification. With crude prices below levels needed to balance the Saudi budget and foreign direct investment falling short of Crown Prince Mohammed bin Salman's $100 billion target, PIF has emerged as the main vehicle driving the de-facto ruler's trillion-dollar Vision 2030 agenda. The fund's Middle East unit, led by Yazeed Al Humied, is increasingly crucial in driving these domestic-focused initiatives, as seen in its dealings with international firms like BlackRock and Brookfield.


BMEP's focus on buyouts, structured solutions, and other investments across various sectors aligns with PIF's diversified portfolio strategy. PIF's assets under management total approximately $925 billion, with over 1.1 million jobs created domestically and globally. By investing in BMEP, PIF is fostering economic development in the kingdom and advancing its position as a global investment hub.

This partnership with Brookfield Asset Management Ltd. enables PIF to expand its global reach and expertise in private equity investments. Brookfield, with $1 trillion in managed assets globally, brings a substantial presence in key markets like the USA, UK, Brazil, India, and China. This collaboration allows PIF to tap into Brookfield's extensive network and experience, furthering Saudi Arabia's economic development and attracting global investment.

In conclusion, PIF's $2 billion investment in Brookfield Middle East Partners (BMEP) is a strategic move that supports the fund's domestic investment focus and Saudi Arabia's Vision 2030. This deal fosters economic development, creates jobs, and positions the kingdom as a global investment hub. The partnership with Brookfield Asset Management Ltd. also expands PIF's global reach and expertise in private equity investments, further cementing the fund's role in driving Saudi Arabia's economic growth and diversification.