Brookfield Asset Management CEO Bruce Flatt speaks at the SALT conference in Manhattan on September 13, 2022 in New York City.
David Dee Delgado | David Dee Delgado Reuters
Saudi Arabia’s Public Investment Fund on Wednesday signed a memorandum of understanding with Brookfield Asset Management, under which the wealth fund will serve as a strategic partner for Brookfield Middle East Partners, the asset manager’s newly announced private equity vehicle for the region. anchor investors.
The non-binding agreement, signed at the 8th Future Investment Initiative, Saudi Arabia’s flagship annual economic conference, in Riyadh, marks the kingdom’s latest push for financial partnerships to boost private equity investments within its borders and economic development.
Brookfield Middle East Partners (BMEP) “will secure $2 billion from a variety of investors and intends to target acquisitions, structured solutions and Other investment opportunities”. PIF and Brookfield joint press release.
While the fund is not limited to Saudi Arabia, at least 50% of the capital will be used to invest in the country and introduce international companies to the local market. The move is in line with Saudi Arabia’s recently updated investment law, which aims to attract more foreign direct investment – the kingdom has set itself a lofty target of $100 billion in annual foreign direct investment by 2030.
Currently, this number has Average of approximately US$12 billion per year Since Vision 2030 was announced in 2017, there is still a long way to go to reach that goal, according to the Saudi Investment Ministry.
PIF, Saudi Arabia’s $925 billion sovereign wealth fund, has deployed billions of dollars around the world in an effort to diversify Saudi Arabia’s revenue sources away from oil, Crown Prince Mohammed bin Salle said. The central goal of the MAN Vision 2030 campaign. After several years of heavy overseas investments, PIF Chairman Yasir al Rumayyan confirmed on Tuesday a shift that many regional observers had already observed: The fund will cut back on overseas investments and focus more on domestic Saudi Arabia market.
Brookfield CEO Bruce Flatt said in a statement: “Saudi Arabia is at the heart of the region’s economic transformation, and we look forward to contributing to its growth through large-scale investments in market-leading companies that will expand from Benefit from our deep operating capabilities.
The Canadian investment fund, which manages approximately $1 trillion in assets in more than 30 countries across five continents, will also expand its Riyadh office and open Brookfield College in Saudi Arabia, a key goal of the PIF to promote foreign direct investment. Making a Contribution: Localizing Knowledge Transfer and Employment.
