Saudi, Pakistani investors launch fund worth hundreds of millions of dollars

Dubai: Saudi Arabian and Pakistani investors have agreed to establish a private equity fund worth hundreds of millions of dollars, with three-quarters of its planned investments earmarked for Pakistan, the Saudi-Pakistan Joint Business Council (SPJBC) said on Monday.

The council described the fund's initial size as “multi-hundred million”, saying it could expand depending on investment opportunities across different sectors. It did not disclose the exact amount or specify a currency.

Private investors from both countries will contribute equally to the fund, which will target agriculture, mining, construction and other industrial activities, according to the council.

The fund will also explore investments involving government-owned land and infrastructure assets in Pakistan, including airports, motorways, ports and maritime projects. The remaining 25% will be allocated to projects in Saudi Arabia, including potential commercial investments in Makkah and Madina.

The council did not disclose individual investor commitments, identify projects selected for financing or provide a timetable for the first investments.

Prince Mansour bin Mohammad Al Saud, chairman of the Saudi-Pakistan Joint Business Council, said the agreement was intended to strengthen commercial cooperation between the two countries.

“Pakistan is a natural partner for the Kingdom, and Saudi investors are looking for partners and markets where they can grow with confidence,” Prince Mansour said in remarks accompanying the announcement.

He said the initiative was aimed at converting earlier discussions between Saudi and Pakistani businesses into investments.

Pakistani businessman Arif Habib described the agreement as “a vote of confidence in profitable investment opportunities in Pakistan”. “For too long, perceptions of Pakistan have clouded the reality, and this agreement shows that serious investors are ready to act on that reality,” Habib told media.

The council said the agreement would also allow institutions from both countries to acquire equity stakes in the fund management company, potentially expanding participation beyond the initial investors.

The announcement follows a series of meetings between Saudi and Pakistani officials to discuss investment opportunities in Pakistan's infrastructure, energy and agricultural sectors.

In August, Prince Mansour met Pakistani Prime Minister Shehbaz Sharif to discuss expanding economic cooperation, according to a statement issued by Pakistan's Prime Minister's Office.

“The Saudi side conveyed interest in investment opportunities in agriculture, ports, highways and airport outsourcing [and the] real estate sector, as well as in the energy, power distribution, and information technology sectors,” the statement said.

In June, Pakistan invited Saudi investors to participate in the construction of the Sukkur-Hyderabad Motorway, known as the M6, and two other major highway projects, according to announcements by Pakistani officials.

The M6 project is intended to improve motorway connectivity between Karachi Port and northern Pakistan, linking major commercial and industrial centres along the route.

The two countries also agreed in August to work towards increasing Pakistani agricultural and food exports to Saudi Arabia to as much as $3 billion, according to reports of discussions between officials.

The fund's proposed investment sectors include several areas covered in those earlier talks, although the council has not confirmed whether any of the projects discussed will receive financing.

The council said the fund's establishment would be subject to regulatory requirements in Saudi Arabia and Pakistan. It did not specify when approvals were expected or when the investment vehicle would begin operations.