Blackstone, KKR, and Brookfield have agreed to acquire a 49 percent stake in Kuwait’s national oil pipelines network in a deal valued at $16 billion, marking the largest foreign investment in the Gulf state’s history. The agreement, announced on Saturday, establishes a joint venture with Kuwait’s national oil and gas company, which will retain long-term control over the 320-kilometer pipeline system while leasing back usage rights to the partners.

The transaction is expected to generate nearly $8 billion in immediate proceeds for Kuwait, providing the government with critical capital to address infrastructure damage caused by recent Iranian attacks. Since late February, Kuwait has reportedly endured approximately 1,400 missile and drone strikes targeting its oil and gas fields, ports, refineries, airport, and key water desalination facilities, escalating economic and security concerns amid heightened regional tensions involving the United States, Israel, and Iran.

Kuwait Petroleum Company aims to use the capital influx to accelerate its expansion plans, targeting an increase in crude oil production capacity to four million barrels per day by 2035. The deal is viewed by Kuwaiti officials as a strong endorsement of the country's long-term economic and investment outlook, despite ongoing geopolitical challenges.

Shaikh Nawaf Saud Al-Sabah, deputy chair and chief executive of Kuwait Petroleum Company, described the investment as a demonstration of Kuwait’s continued appeal to global investors within a difficult regional environment. “This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital,” he stated.

The pipeline deal follows Kuwait’s recent $6 billion bond issuance aimed at shoring up the country’s finances amid the economic fallout from the attacks. Other Gulf energy producers such as Saudi Arabia and the United Arab Emirates have similarly leveraged foreign capital by selling minority stakes in strategic infrastructure assets in recent years to strengthen their fiscal positions and modernize energy sectors.

Blackstone chief executive Stephen Schwarzman highlighted Kuwait’s potential as an investment hub, noting the country’s significant wealth and its initiatives to diversify the economy beyond oil and gas. The participation of Blackstone, Brookfield, and KKR—three of the world’s largest infrastructure investors—reflects growing international interest in the Middle East’s energy infrastructure, even as security risks remain elevated.

Although Kuwait manages a sovereign wealth fund valued at roughly $1 trillion, it has traditionally attracted less private foreign capital compared to some of its Gulf neighbors. However, recent moves to encourage foreign investment, including the recent establishment of regional offices by firms such as BlackRock and Goldman Sachs, indicate a shift toward greater openness in its economic strategy.