Schwarzman Expects Blackstone’s Gulf Assets to Grow Three to Four Times by Decade’s End
Key Facts
Blackstone Chairman Stephen Schwarzman said the company’s assets in the Gulf could be three to four times their current level by the end of the decade, a forecast that highlights the expansion of its investment presence in the region. In an interview with The National, Schwarzman declined to specify a dollar target, saying: "I would be surprised if they were not three to four times larger than the current level." The comparison concerns the Gulf assets’ share of Blackstone’s Europe, Middle East and Africa portfolio, according to the newspaper. Schwarzman said the company deployed more capital in the Gulf in the previous year than in any prior period in its history. The remarks come as the company reported growth in total assets under management and strong inflows in the third quarter of 2026.
Blackstone’s total assets under management reached $1,368.3 billion in the third quarter of 2026, up 10% year over year, according to its earnings filing with the U.S. Securities and Exchange Commission. The company received inflows of $63.3 billion during the quarter and $271.6 billion in the twelve months ended September 30. It also deployed $30.1 billion in investments in the quarter and $142.0 billion over the same twelve-month period. These figures show the scale of the investment platform through which the company seeks to expand its regional activity, but do not specify the value of its current Gulf assets. Schwarzman did not provide a dollar figure for the size those assets could reach.
Commenting on its quarterly results, Blackstone said its flagship strategies outperformed comparable public market indices in the third quarter, and that inflows reached $63 billion, the rounded figure cited by the chief executive. That is close to the quarterly inflows of $63.3 billion in the financial filing. The company puts the performance of its strategies and its fundraising at the forefront of its results, alongside Schwarzman’s forecast of an increase in Gulf assets. But the earnings filing does not directly link quarterly inflows to the Gulf expansion target or specify their geographic distribution. The comparison of Gulf growth remains tied to the region’s share of the Europe, Middle East and Africa portfolio.
The remarks are underpinned by a broad asset base in Europe and the Middle East; Schwarzman said the company’s combined assets in the two regions reached $400 billion in the previous year. He added that assets in Europe alone could grow to $500 billion by 2035. These figures provide context for the scale of the regional activity he cited, while the Gulf growth forecast remains separate from the disclosed value of European assets. In infrastructure, Blackstone had $97 billion in assets under management as of September 30, 2026. Its global investment sectors include the energy transition, transport, digital infrastructure, water and waste, according to the company’s website.
Schwarzman’s comments followed the Kuwait pipeline network deal announced in July 2026, valued at $16 billion, under a lease and leaseback agreement covering the local and export network. Under the agreement, the consortium comprising Blackstone, Brookfield and KKR owns 49% of the joint venture, while Kuwait Oil Company retains 51% and full ownership and operational control of the network. The agreement covers 13 pipelines for 20.5 years. Schwarzman said the investment deepens Blackstone’s partnership with Kuwait, which has lasted nearly four decades. Kuwait Oil Company projected initial proceeds of $7.85 billion upon completion of the deal to support capital expenditure plans.
The deal was also linked to Kuwait’s plans to raise its targeted crude oil production capacity to 4 million barrels per day by 2035, according to a Blackstone statement. The chairman of Kuwait Petroleum Corporation said the agreement responds to a government pledge announced in February 2026 to attract international investors to strategic infrastructure while preserving national ownership and control. More broadly, Blackstone announced on October 19 the final close of its fifth Energy Transition Partners fund at $8.7 billion, signaling continued global fundraising for infrastructure. The company’s shares closed at $116.7 on October 27. The company also declared a quarterly cash dividend of $1.12 per share for shareholders of record at the close of business on November 2, 2026, payable on November 9.