The latest
Blackstone plans to open an office in Kuwait during the third quarter through the Kuwait Direct Investment Promotion Authority, expanding the Gulf presence of the $1.35 trillion alternative asset manager.
The office will be Blackstone’s second in the six-member Gulf Cooperation Council after Abu Dhabi. The announcement follows an agreement by Blackstone, Brookfield Asset Management and KKR on a $16 billion infrastructure partnership involving Kuwait’s oil export pipelines, described as the largest foreign direct investment in the country’s history.
Blackstone also plans to open more offices across the GCC over the coming year as competition intensifies among global asset managers for mandates from Gulf sovereign wealth funds and institutional investors.
Details:
- Opening schedule: The firm expects to launch its Kuwait office in the third quarter.
- Local authorization: The office will open through the Kuwait Direct Investment Promotion Authority.
- Partnership value: The infrastructure agreement with Brookfield and KKR is worth about $16 billion.
- Local objective: Blackstone aims to support Kuwait’s economic diversification and deepen a partnership spanning nearly four decades.
- Investment competition: Private equity, private credit and infrastructure firms are competing for mandates from the Kuwait Investment Authority and other major institutions.
- International presence: Partners Group and Carlyle have announced plans to open in Kuwait, while BlackRock has appointed a country head and launched a local office.
- Regional commitments: Blackstone has committed about $8 billion in the Middle East, including Saudi data centers and logistics investments in Abu Dhabi.
- Other deals: The firm has backed Dubai-based Property Finder and committed $250 million to a new digital payments platform in Abu Dhabi.
- War risk: Investment firms have continued their Gulf expansion despite tensions linked to the Iran war and repeated threats facing Kuwait.
Between the lines
Global asset managers are no longer content to raise Gulf capital remotely from Dubai or Abu Dhabi. Blackstone’s move into Kuwait reflects a shift toward an on-the-ground presence that offers direct access to deals and investment mandates, suggesting that the appeal of long-term sovereign capital continues to outweigh immediate regional risks.
What to Watch:
Attention will turn to the additional Gulf offices Blackstone plans to open and the execution of the Kuwaiti pipeline partnership. The course of the war and interest rates will also shape the recovery of real estate, infrastructure and private-market deals across the region.
