Key Takeaways
- • The Saudi-Pakistan Joint Business Council signed an MoU in Karachi on Monday to establish the Saudi-Pakistan Private Equity Fund, launched with an initial size of several hundred million dollars.
- • Saudi and Pakistani private investors will contribute equally to the fund, with 75% of investments earmarked for Pakistan and 25% for Saudi Arabia, according to a statement.
- • The fund will target fast-growing private businesses in agriculture, mining and construction, and assess opportunities from Pakistan's land bank monetisation programme, including airports, motorways, ports and maritime projects.
- • Prince Mansour bin Mohammed Al Saud framed the fund as a commercial foundation for the countries' relationship, while Arif Habib Group Chairman Arif Habib called it a vote of confidence in Pakistan's investment case.
- • Institutions from both countries may be invited to acquire equity stakes in the fund management company.
Summary
Under the proposed arrangement, Saudi and Pakistani private investors will contribute equally, with 75% of investments earmarked for Pakistan and the remaining 25% for Saudi Arabia. Prince Mansour bin Mohammed Al Saud said the fund would give the countries' longstanding relationship a stronger commercial foundation, stating that an assessment of Pakistan had revealed a more stable economy and genuine investment opportunities. Arif Habib Group Chairman Arif Habib described the fund as a vote of confidence in profitable opportunities in Pakistan and a first step towards restoring the confidence of Saudi and other foreign investors.
The fund plans to invest in fast-growing private businesses, particularly in agriculture, mining, construction and other industries. It will also assess opportunities emerging from the government's land bank monetisation programme, including projects involving airports, motorways, ports and maritime development, and will explore business opportunities across Saudi Arabia, including in its holy cities. Institutions from both countries may be invited to acquire equity stakes in the fund management company. Pakistan's council co-chairman and Fatima Group Chairman Fawad Mukhtar participated virtually.
Following the signing, Prince Mansour and a Saudi business delegation visited the Karachi Port Trust headquarters and South Asia Pakistan Terminals Limited (SAPTL-HPH). KPT Chairman Rear Admiral (retd) Shahid Ahmed briefed the delegation on the port's transformation into a fifth-generation facility, its record performance in FY2025-26, and projects including the proposed 140-acre Maritime Business District, the Manora Shipyard development, and connectivity initiatives such as the M-10 Port Link and ML-1 railway connection. Prince Mansour expressed interest in these projects as avenues for Saudi investment and joint ventures.
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