Riyadh - Sharikat Mubasher: Saudi Arabia’s Public Investment Fund (PIF) inked a non-binding memorandum of understanding (MoU) with the global investment firm Brookfield Asset Management to expand the company’s investments in Saudi Arabia and the region.

Under this agreement, the PIF will act as a strategic anchor investor for Brookfield Middle East Partners (BMEP), a new platform that aims to serve as Brookfield’s new private equity vehicle for investments in businesses based in Saudi Arabia and the wider region, the sovereign fund announced in a statement.

The MoU was signed during the eighth edition of the Future Investment Initiative (FII8).

The BMEP will target $2 billion from a variety of investors and intends to target buyouts, structured solutions, and other investment opportunities across a range of strategic sectors including industrials, business and consumer services, technology, and healthcare.

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

This partnership will foster economic development in Saudi Arabia, and further advance the Kingdom’s strategy to become a leading hub for global investment and economic growth.

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

On his part, Bruce Flatt, CEO of Brookfield Asset Management, commented: “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.”

Moreover, Brookfield will expand its Riyadh office and make Brookfield Academy available locally.