Brookfield doubles down on Gulf with 20% of oil supply at risk

Brookfield Corporation Chief Executive Officer Bruce Flatt said the firm plans to “double down” on investments in the Gulf, a significant vote of confidence in a region destabilized by the ongoing war with Iran and the closure of a critical energy chokepoint.

"We are looking at the long-term fundamentals, and we see incredible opportunities," Flatt said in a May 4 interview with CNBC. His comments suggest a strategy focused on acquiring assets at a potential discount during a period of maximum uncertainty, positioning the asset manager for outsized returns if stability returns.

The move comes as the six-member Gulf Cooperation Council presents a united front against Iran after attacks on member states, including Qatar and Saudi Arabia. The conflict has led to the closure of the Strait of Hormuz, through which about 20 percent of the world's oil supplies transit, creating significant economic and logistical pressure on the global economy.

Flatt’s statement signals that one of the world’s largest alternative asset managers sees the current crisis as a buying opportunity, not a reason to retreat. For other institutional investors, Brookfield’s move could serve as a bellwether, potentially unlocking further capital for infrastructure and real estate projects in a region navigating its most significant crisis since 1981.

A History of Regional Resilience

Understanding Brookfield's calculus requires looking at the Gulf's history of navigating tensions with Iran. Since the 1979 Iranian Revolution, the GCC states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE have often unified publicly during crises while pursuing divergent national strategies behind the scenes. This dynamic was visible during the Iran-Iraq War in the 1980s and the 1990 Gulf War.

More recently, the 2017-2021 Qatar diplomatic crisis saw Saudi Arabia, the UAE, and Bahrain sever ties with Doha, partly over its relationship with Tehran. Yet, the current war has pushed the council back into a public stance of "full solidarity," according to a recent statement. This historical pattern of crisis-driven cohesion, followed by a return to national interests, suggests a level of resilience and predictability that experienced investors like Brookfield may be pricing into their models. Flatt is likely betting that the GCC framework, while imperfect, provides a durable enough structure to ensure long-term economic activity and recovery.

Brookfield's Infrastructure and Energy Play

Brookfield is no stranger to large-scale infrastructure and energy investments, which gives its Gulf commitment significant weight. The firm is already a major player in the nuclear energy sector through its 49 percent ownership of reactor manufacturer Westinghouse, a joint venture with uranium miner Cameco. That investment positions Brookfield at the heart of a global nuclear renaissance, a trend accelerated by the very energy security concerns the Iran war has highlighted.

This existing footprint in critical global infrastructure provides context for its Gulf strategy. The firm is likely targeting long-life assets in real estate, energy, and data infrastructure that will be essential for the region's post-conflict growth. By increasing its exposure now, Brookfield can secure favorable pricing on assets that are fundamental to the Gulf's economic future, from Riyadh to Abu Dhabi.

This article is for informational purposes only and does not constitute investment advice.