The Saudi-Pakistan Joint Business Council has signed a Memorandum of Understanding (MoU) to establish a Saudi-Pakistan Private Equity Fund, marking a new step towards strengthening investment and economic cooperation between the two countries.
Speaking at the signing ceremony in Karachi on Monday, Prince Mansour bin Mohammed Al Saud said Saudi Arabia and Pakistan shared a deep-rooted friendship and brotherly relationship that went far beyond formal agreements.
He said the proposed fund would provide a stronger commercial foundation for the longstanding ties between the two countries.
“Pakistan is a natural partner for the Kingdom of Saudi Arabia, and Saudi investors are looking for reliable partners and markets where they can grow with confidence,” he said.
Prince Mansour added that a closer assessment of Pakistan had revealed a more stable economy and genuine investment opportunities.
He said Saudi and Pakistani investors were now turning years of discussions and assessments into practical investments that could benefit people in both countries and establish a lasting economic partnership.
Arif Habib Says Fund Reflects Investor Confidence
Arif Habib, head of the Arif Habib Group, described the proposed fund as a vote of confidence in profitable investment opportunities in Pakistan.
He said longstanding perceptions about Pakistan had often obscured the realities of its economy, adding that the agreement demonstrated the willingness of serious investors to move forward on the basis of actual opportunities.
Habib said Pakistani investors were playing an active role in strengthening confidence in the national economy, while Saudi partners were joining them in investment initiatives.
He also highlighted the potential of monetising the government’s land bank, saying that directing capital towards these assets could help transform underutilised resources into productive investments.
He thanked Prince Mansour and representatives from both sides for their time, patience and goodwill in helping bring the initiative forward.
Habib described the agreement as an initial step towards restoring confidence among Saudi and other international investors in Pakistan.
Fund to Focus on Investment Opportunities in Both Countries
Under the MoU, the two sides have agreed to establish a proposed joint fund worth hundreds of millions, with the potential to expand its size in the future according to investment opportunities across different sectors.
Saudi and Pakistani private investors will contribute equally to the proposed fund.
According to the agreed investment structure, 75 per cent of the fund will be invested in projects in Pakistan, while the remaining 25 per cent will be directed towards projects in Saudi Arabia.
The initiative is expected to create new avenues for cross-border investment, encourage private-sector participation and strengthen economic ties between Pakistan and Saudi Arabia.
