KUWAIT CITY / NEW YORK: Blackstone (NYSE: BX), the world’s largest alternative asset manager, has announced plans to establish an office in Kuwait through the Kuwait Direct Investment Promotion Authority (KDIPA), marking a significant expansion of its presence across the Gulf Cooperation Council (GCC).
The new office is expected to open in the third quarter of 2026 and forms part of Blackstone’s broader strategy to strengthen its regional footprint, with additional GCC offices planned over the coming year.
Jon Gray, President and Chief Operating Officer of Blackstone, said Kuwait’s long-term economic ambitions make it an increasingly attractive destination for global investment.
“Kuwait has the resources, vision and leadership to be a key commercial and financial hub in the region. Private capital can play an important role in supporting the country’s long-term economic diversification efforts, and we look forward to deepening a partnership that spans nearly four decades,” Gray said.
H.E. Sheikh Dr. Meshaal Jaber Al-Ahmad Al-Sabah, Director General of KDIPA, said the decision reflects growing international confidence in Kuwait’s investment climate.
“Leading global companies’ presence in Kuwait reflects growing confidence in its long-term outlook. It further reinforces Kuwait’s position as a destination for investment and sustainable growth,” he said.
KPC Signs Landmark $16 Billion Pipeline Investment
The office announcement comes as Kuwait Petroleum Corporation (KPC) signed a landmark $16 billion lease-and-leaseback agreement for its crude oil pipeline network with a consortium comprising Blackstone, Brookfield Asset Management, and KKR, representing the largest foreign direct investment in Kuwait’s history.
The transaction, known as Project Peregrine, will see Kuwait Oil Company (KOC), a subsidiary of KPC, establish a joint venture with the three global investment firms under a 20.5-year lease-and-leaseback structure featuring a volume-based tariff mechanism.
Under the agreement, the investor consortium will collectively acquire a 49% stake in the joint venture, while KOC will retain 51% ownership, along with full operational control and ownership of the pipeline network.
The infrastructure includes 13 pipelines spanning approximately 320 kilometers, transporting crude oil and refined petroleum products from Kuwait’s oilfields to export terminals on the Arabian Gulf.
KPC said the transaction is expected to generate approximately $7.85 billion in upfront proceeds at closing, providing additional capital to support the company’s future investment and expansion plans.
KPC Deputy Chairman and CEO Sheikh Nawaf Saud Al-Sabah described the agreement as a major milestone for Kuwait’s investment landscape.
“This transaction sends a powerful signal that Kuwait continues to rise as an attractive destination for global capital, even amid a challenging regional environment,” he said.
Part of Broader Regional Infrastructure Trend
The KPC transaction reflects a broader trend among Gulf energy companies to unlock value from strategic infrastructure assets while attracting international institutional capital. Similar pipeline financing initiatives have previously been completed by Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), and Bapco Energies in Bahrain.
Centerview Partners, HSBC, and JPMorgan served as financial advisers to KPC on the transaction.
The combined announcements underscore Kuwait’s growing efforts to attract long-term foreign investment while advancing its economic diversification strategy through partnerships with leading global financial institutions.
