RIYADH: A joint council of Saudi Arabian and Pakistani investors launched a private equity fund Monday, part of a broader push by the two countries to deepen bilateral private-sector trade and investment.
The Saudi-Pakistan Joint Business Council, formed by both governments, said the fund’s initial size is “multi-hundred million,” with expectations it will expand based on opportunities across sectors. Three-fourths of the fund will be invested in Pakistan, with the remainder going to Saudi Arabian projects.
The launch comes as Islamabad and Riyadh are deepening longstanding ties, particularly in defense, amid few signs of a breakthrough in the months-long U.S.-Iran conflict.
The council signed a memorandum of understanding Monday to establish the Saudi-Pakistan Private Equity Fund. Saudi and Pakistani private investors will contribute equally to the fund.
The fund intends to invest in high-growth private businesses, including agriculture, mining, construction and other industries. It will also explore commercial projects arising from the Pakistani government’s program to monetize its land bank, including airports, motorways, ports and maritime development.
“This fund is a vote of confidence in profitable investment opportunities in Pakistan,” said Arif Habib, a council member. “For too long, perceptions of Pakistan have clouded the reality, and this agreement shows that serious investors are ready to act on that reality.”
Prince Mansour bin Mohammad Al Saud, chairman of the council, said the fund gives commercial footing to the friendship between the two nations.
“Pakistan is a natural partner for the Kingdom, and Saudi investors are looking for partners and markets where they can grow with confidence,” he said. “Having looked closely at Pakistan, what we see today is a more stable economy with real opportunities.”
The fund will also seek commercial investments across Saudi Arabia, including in the holy cities. The agreement allows institutions on both sides to be invited to participate in the equity of the fund management company.
The establishment of the fund is subject to regulatory approval from both governments. Once approvals are in place, the two sides will proceed with structuring and initial investments.
