Jad Ellawn, Brookfield's Managing Partner and Regional Head of the Middle East, discussed the region's strong investment landscape, noting that the GCC continues to outperform many global markets. He emphasized that the Middle East is viewed as a significant long-term destination for investors. This positive outlook is underpinned by the GCC's ongoing structural transformation, shifting from oil-dependent economies to more diversified ones. This transformation is creating substantial opportunities and scale across various sectors, including infrastructure, real estate, and private equity.
Brookfield, a major direct investor in the Middle East, has adopted a "contrarian" investment approach, entering markets when others are hesitant, which Ellawn attributes to their success. The firm has significantly expanded its presence in the region, growing its assets under management (AuM) in the GCC from $8 billion to approximately $16 billion in just over two years, aiming for $15-20 billion. Brookfield has been active in the UAE since 1997 through its construction business and established an investment office in 2015, making it an early mover compared to many Western private capital firms.
Ellawn highlighted strong demand for commercial property, particularly in Saudi Arabia, where office space is exceptionally tight, with occupancy rates as high as 99%. He also sees significant opportunities for commercial property development in the UAE. Brookfield's investments span a wide range of asset classes, including infrastructure, renewable energy, and private equity, alongside its core real estate interests. The firm recently raised $2 billion for a Middle East-focused fund, backed by Saudi Arabia's Public Investment Fund (PIF).
The regional growth is supported by accelerating economic reforms, robust fiscal buffers, deepening capital markets, and the institutionalization of the ecosystem. Ellawn also noted that sovereign wealth funds are investing strategically, and administrations are planning for the long term, creating a conducive environment for private capital. Brookfield focuses on critical assets that will define the region's next growth phase, from hospitality and residential platforms to digital infrastructure supporting AI and data growth. The region's strategic location, addressing over one-third of the world's population within a 4-6 hour flight radius from Dubai, further enhances its investment appeal. Investments in education, such as Brookfield's stake in GEMS Education, are also seen as crucial for long-term residency and development.
Ellawn expressed confidence in the diversifying nature of investments within the GCC, stating that the region is dynamic enough to circulate capital across various themes without being dependent on just one. This includes future technologies like AI data centers and cryptocurrency. Brookfield leverages proprietary data for its investment decisions, providing an advantage in the competitive private capital landscape.
