Kuwait signed a $16 billion crude oil pipeline deal with private equity giants Blackstone, Brookfield Asset Management, and KKR, marking the largest foreign direct investment in the Gulf nation's history as it seeks to attract outside capital while confronting heightened regional security threats, Axios reported Monday.

Under the agreement, the three North American investment firms will each acquire an equal share of a combined 49% stake in a newly formed joint venture with state-owned Kuwait Petroleum Corp.

The venture will lease pipeline assets from KPC and lease back the usage rights under a long-term arrangement.

The transaction will provide Kuwait with an upfront payment of $7.85 billion while allowing the government to retain majority ownership and operational control of the country's critical oil infrastructure.

The deal comes as Kuwait faces growing security concerns following attacks on its energy infrastructure that have been attributed to Iran in retaliation for recent U.S. military strikes.

The pipeline transaction is part of a broader effort by Gulf state oil companies and sovereign investors to unlock capital tied up in infrastructure assets while drawing foreign investment to finance ambitious domestic development plans, Reuters reported.

The strategy has gained momentum across the Gulf as energy producers seek to diversify funding sources without relinquishing control of key state-owned assets.

Infrastructure monetization deals have become increasingly attractive to global investment firms seeking stable, long-term returns backed by energy transportation networks.

For Kuwait, whose economy remains heavily dependent on crude oil exports, the agreement injects billions of dollars into state coffers while preserving control over one of the country's most important strategic industries.