New Brookfield Middle East platform receives $2 billion investment from Saudi sovereign wealth fund.

• Brookfield Middle East Partners aims to secure $2 billion in investments from various sources, including buyouts, structured solutions, and other opportunities, according to a statement from the firm.
• At least 50% of the fund's capital will be invested in Saudi Arabia and in attracting foreign companies to the local market, although the fund is not restricted to the kingdom.

On Wednesday, Brookfield Asset Management signed a memorandum of understanding with Saudi Arabia's Public Investment Fund, which will serve as a strategic anchor investor for Brookfield's newly announced private equity vehicle for the region, Brookfield Middle East Partners.

At the eighth edition of Future Investment Initiative in Riyadh, Saudi Arabia signed a non-binding agreement aimed at increasing private equity investment and economic growth within the kingdom through financial partnerships.

Brookfield Middle East Partners (BMEP) aims to secure $2 billion from various investors through buyouts, structured solutions, and other investment opportunities across various strategic sectors, including industrials, business and consumer services, technology, and healthcare, as stated in a joint press release from the PIF and Brookfield.

At least 50% of the fund's capital will be invested in Saudi Arabia and in bringing international companies to the local market, in accordance with the kingdom's recently updated Investment Law, which aims to attract $100 billion in annual foreign direct investment by 2030.

Since the announcement of Vision 2030 in 2017, the figure has averaged approximately $12 billion per year, according to data from the kingdom's investment ministry, which is far from the target.

The Saudi Arabian sovereign wealth fund, PIF, has been investing billions of dollars globally in an effort to diversify the country's revenue streams beyond oil. However, PIF Chairman Yasir al Rumayyan announced on Tuesday that the fund will be shifting its focus to domestic investments in Saudi Arabia.

Brookfield CEO Bruce Flatt stated that Saudi Arabia is crucial to the region's economic transformation and that the company is excited to contribute to its growth by investing in market-leading companies that will benefit from their extensive operating capabilities.

The Canadian investment fund, which manages over $1 trillion in assets across multiple countries, will also expand its Riyadh office and make its Brookfield Academy accessible in the kingdom, supporting the PIF's objective of transferring local knowledge and creating employment opportunities.