Key Takeaways
- • The Saudi-Pakistan Joint Business Council (SPJBC) signed an MoU to establish a private equity fund, starting with a corpus worth several hundred million (exact figure not disclosed in the source), according to Mettis Global.
- • Saudi and Pakistani private investors are to contribute equally to the fund.
- • The fund's allocation is 75% for investments in Pakistan and 25% for projects in Saudi Arabia.
- • Target sectors include agriculture, mining, construction, and projects tied to Pakistan's plan to monetize public land, such as airports, motorways, ports and maritime development.
- • The fund's structure and first investments remain subject to regulatory approvals.
Summary
Saudi and Pakistani private investors are to contribute equally to the fund. Capital allocation is set at 75% for Pakistan and 25% for Saudi Arabia. Pakistan-focused investments are expected to target agriculture, mining and construction, and to consider commercial projects linked to the government's plan to monetize public land. Potential opportunities cited include airports, motorways, ports and maritime development. Investments in Saudi Arabia, including in its holy cities, are also envisaged.
Executives from the Bank of Punjab, Habib Bank, Faysal Bank, United Bank and Ismail Industries attended the signing. The source notes that the fund's structure and first investments depend on regulatory approvals, and no timeline for those approvals was provided in the available reporting.
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