Brookfield Corporation is increasing its investments in Gulf-region businesses despite the ongoing war, according to chief executive officer Bruce Flatt [1].
This strategic pivot suggests a high risk tolerance from one of the world's largest asset managers. By expanding its footprint during a period of regional instability, Brookfield is positioning itself to acquire assets at a potential discount or secure early entry into emerging infrastructure projects.
Flatt discussed the strategy during an appearance on CNBC’s "Money Movers" program in April 2024 [1]. He said the company is "doubling down" on the region, specifically targeting opportunities in real estate and infrastructure [1, 2].
The decision to increase capital allocation comes at a time when many global investors remain cautious about the Middle East due to the war [1]. However, Flatt said the conflict creates long-term opportunities for the firm [1, 2]. He said the current environment allows Brookfield to capitalize on assets that may be undervalued or overlooked by competitors.
Brookfield typically manages diverse portfolios across global markets, but the focus on the Gulf indicates a specific belief in the region's long-term economic resilience [2]. The company intends to leverage these assets to ensure growth as the region evolves its economy beyond traditional energy sectors.
Flatt said the firm views the current geopolitical climate not as a deterrent, but as a catalyst for strategic acquisition [1].
“Brookfield is "doubling down" on investments in Gulf‑region businesses despite the ongoing war.”
Brookfield's approach reflects a contrarian investment strategy where geopolitical instability is viewed as a market entry opportunity. By focusing on infrastructure and real estate in the Gulf, the firm is betting that the long-term economic trajectory of these states will outweigh the short-term risks of regional conflict.
