Arab News, Thu, Oct 31, 2024 | Rabi al-Thani 28, 1446
Saudi Arabia’s PIF signs MoU with Brookfield to launch $2bn investment platform
Saudi Arabia:
Saudi Arabia’s Public Investment Fund and
Brookfield Asset Management Ltd. have signed a non-binding memorandum of
understanding for the wealth fund to become a strategic anchor investor in
Brookfield Middle East Partners.
According to a press release, this new platform,
BMEP, will serve as Brookfield’s private equity vehicle for investments in Saudi
Arabia and the broader region.
The MoU was finalized during the Future Investment
Initiative summit currently underway in Riyadh.
BMEP aims to raise $2 billion from various
investors, focusing on buyouts, structured solutions, and other investment
opportunities across key sectors, including industrials, business and consumer
services, technology, and healthcare.
At least 50 percent of the capital will be
directed toward investments in Saudi Arabia, as well as into leading
international companies looking to expand in the local market, facilitating
foreign direct investment into the Kingdom.
This partnership seeks to combine the strengths of
PIF and Brookfield to enhance local private equity investment opportunities and
promote economic development in Saudi Arabia, further supporting the country’s
vision of becoming a leading hub for global investment and economic growth.
Yazeed A. Al-Humied, deputy governor and head of
MENA investments at PIF, stated: “PIF’s collaboration with Brookfield
demonstrates our continued efforts to foster international partnerships that
enhance local markets.”
He added: “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.”
PIF has been actively promoting Saudi Arabia’s
economic transformation and diversification, driving local growth and impacting
global industries. Since 2017, PIF has launched 95 new companies within the
Kingdom and has generated over 1.1 million direct and indirect jobs globally.
Expressing enthusiasm over the partnership,
Brookfield Asset Management CEO Bruce Flatt said: “We are honored to partner
with PIF on 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.”
He added: “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, one of the largest foreign investors
in the GCC, has been present in the region since 1997, making direct investments
since 2015. Its portfolio, valued at $12 billion, encompasses private equity,
real estate, and infrastructure. Brookfield’s strategy focuses on fostering
long-term partnerships with leading local institutions, which sets it apart in
the region.
As part of the MoU, the asset management company
will expand its Riyadh office and make Brookfield Academy available locally,
enabling skill development for investment professionals and supporting PIF’s
commitment to fostering local talent.
This non-binding MoU is subject to obtaining
regulatory and internal approvals and is contingent upon the satisfaction of
specific conditions, the press release said.