Brookfield Asset Management is preparing to launch a $2bn private equity fund dedicated to the Middle East, marking a bold bet on the region’s investment potential amid a broader global slowdown in deal activity. 

The Canadian alternative asset manager has already built an $8bn PE portfolio in the Gulf, alongside $5bn in real estate and infrastructure assets.

The planned fund, which would be the largest ever focused solely on the region, underscores Brookfield’s confidence in the Gulf’s economic transformation and emerging role as a private equity hub. “The Middle East means emerging market returns with developed market risk,” said Jad Ellawn, Head of Middle East at Brookfield. “That is the attraction. You don’t find that anywhere else.”

Brookfield’s strategic positioning dates back to 2015, when the firm opened its Dubai office and began cultivating long-term partnerships with regional stakeholders. Notable investments include ICD Brookfield Place in Dubai, now nearly fully occupied, and GEMS Education, which caters to the region’s surging demand for premium schooling.

Brookfield joins a growing list of global firms accelerating their Gulf strategies. KKR recently committed $5bn to a regional data centre business, while CVC Capital Partners, Ardian, General Atlantic, and Warburg Pincus are all increasing their presence. Permira is also eyeing new office space in Dubai.

“The region is no longer just a source of capital — it’s become a destination for it,” said Huda Al Lawati, CEO of Aliph Capital.

This shift is supported by sweeping regulatory reforms and ambitious privatisation programmes across Gulf states, aimed at encouraging foreign direct investment and creating robust exit opportunities for PE firms.

While risks remain — including oil price volatility and ongoing geopolitical tension — early movers like Brookfield are well positioned to capitalise on the region’s rapid evolution.

“We’ve proven that the ingredients for a successful private equity environment exist,” said Anuj Ranjan, Global Head of Private Equity at Brookfield. “And I do think our peers will show up.”

Source: Bloomberg