Saudi and Pakistani Investors Sign MoU to Launch Saudi–Pak Private Equity Fund

The Saudi–Pakistan Joint Business Council (SPJBC) has signed a memorandum of understanding (MoU) to establish the Saudi–Pakistan Private Equity Fund, marking a new step in bilateral investment cooperation.

The signing ceremony brought together council members and business leaders from both countries. Pakistani participants included Fawad Mukhtar, Co-Chair of the Council and Chairman of Fatima Group, who joined virtually.

Those attending in person included Zafar Masud, President and CEO of The Bank of Punjab; Nassir Saleem, President and CEO of Habib Bank Limited; Yousaf Hussain, President and CEO of Faysal Bank Limited; and Maqsood Ismail, Director of Ismail Industries Limited.

Dr Gohar Ejaz, Chairman of Lake City Group; Lord Zameer Choudrey, Chairman of Bestway Group; and Jawaid Iqbal, President and CEO of United Bank Limited, also joined virtually.

The Saudi delegation included H.H. Prince Mansour bin Mohammad Al Saud, Chairman of the SPJBC, and the council’s vice chairmen, Mohammad bin Abdulaziz Al Ajlan, CEO of Al Ajlan Group, and Abdulaziz Bin Ali Al Ashrafi of Tayba Group.

Other Saudi participants included representatives of RAEM Group, Alsharif Group, Saudi Meters Company, International Investment Gare, SAFA Investment, Somuo Investment, Bin Dawood Investment, ASYAD Group and Albakri Group. Barrister Habil Ahmed Khan, CEO of Welt Konnect, and Mansour Chaudhry, CEO of Barq Pakistan, also attended.

Fund to Begin with Several Hundred Million Dollars

The council was established by the governments of Saudi Arabia and Pakistan, in coordination with their bilateral high committee, to strengthen private-sector trade and investment between the two countries.

The proposed fund follows a series of council meetings and is expected to launch with an initial size of several hundred million dollars. Its scale could increase as investment opportunities emerge across different sectors.

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Private investors from Saudi Arabia and Pakistan will contribute equally to the fund. Under the proposed allocation, 75% of its capital will be invested in Pakistan, while the remaining 25% will support projects in Saudi Arabia.

Agriculture, Mining and Infrastructure Among Target Sectors

The fund plans to invest in high-growth private businesses across agriculture, mining and industries such as construction.

It will also explore commercial opportunities linked to the Pakistani government’s programme to monetise its land bank. Potential areas include airport development, motorways, ports and maritime infrastructure.

These investments aim to unlock the economic value of underutilised public land through commercially structured and transparent projects.

The fund will also pursue commercial investment opportunities in Saudi Arabia, including projects in the holy cities.

The MoU further allows institutions from both countries to participate in the equity of the fund management company.

Saudi and Pakistani Leaders Welcome Investment Partnership

Speaking at the signing, Prince Mansour bin Mohammad Al Saud said the two countries shared a longstanding relationship that extended beyond formal agreements.

He said the fund would give their longstanding friendship a stronger commercial foundation and create opportunities for Saudi investors to work alongside Pakistani partners.

Prince Mansour described Pakistan as a natural partner for Saudi Arabia. He added that investors were increasingly looking at the country’s economic stability and emerging investment opportunities.

He said the fund would turn years of discussions and studies into practical investments benefiting both countries.

Arif Habib said the initiative reflected confidence in profitable investment opportunities in Pakistan.

He said the agreement showed that investors were prepared to act on the country’s economic potential despite longstanding concerns about its investment environment.

Habib added that Pakistani investors were committing capital alongside their Saudi partners, with government land monetisation offering opportunities to turn underutilised assets into productive investments.

He also thanked Prince Mansour and council members from both countries for their efforts in bringing the initiative forward. He described the fund as an initial step towards rebuilding confidence among Saudi and other foreign investors.

Regulatory Approvals to Precede Fund Launch

The signing marks a new phase in Saudi–Pakistan economic cooperation, shifting the relationship towards joint private-sector investment.

The fund’s establishment and operations will remain subject to regulatory requirements in both countries.

Once the necessary approvals are secured, the two sides plan to proceed with the fund’s structuring and initial investments.