Saudi-Pakistani investment ties get private equity boost

Investors sign MoU for multi-million-dollar fund 75% of investment earmarked for Pakistan

KARACHI:

A joint council of Saudi and Pakistani investors on Monday launched a private equity fund with an initial size of several hundred million dollars, aimed at expanding private-sector investment and strengthening commercial ties between the two countries.

The Saudi-Pakistan Joint Business Council signed a memorandum of understanding (MoU) for the establishment of the Saudi-Pakistan Private Equity Fund at a ceremony in Karachi. The council said the fund's size would be expanded in line with investment opportunities across different sectors.

Under the proposed arrangement, Saudi and Pakistani private investors will contribute equally to the fund, with 75% of its investments earmarked for projects in Pakistan and the remaining 25% for Saudi Arabia, according to a statement.

Addressing the ceremony, Prince Mansour bin Mohammed Al Saud said the two countries shared bonds of friendship and brotherhood that went beyond any agreement. The fund, he said, would give their longstanding relationship a stronger commercial foundation.

"Pakistan is a natural partner for the Kingdom, and Saudi investors are looking for partners and markets where they can grow with confidence," he said. "An assessment of Pakistan had revealed a more stable economy and genuine investment opportunities," he added.

Prince Mansour said investing alongside Pakistani partners would turn years of deliberation and study into practical ventures benefiting the peoples in both the countries, while laying the groundwork for a lasting partnership. Arif Habib Group Chairman Arif Habib described the fund as a vote of confidence in profitable investment opportunities in Pakistan, saying that the long-standing perceptions had obscured the country's economic realities.

"This agreement shows that serious investors are ready to take practical steps based on that reality," he said, adding that Pakistani investors were contributing to confidence in the national economy while Saudi investors were joining them.

Habib said directing capital towards the government's land bank monetisation programme could turn idle assets into productive investments. He thanked Prince Mansour and members of both sides for their efforts in bringing the fund to fruition, describing it as a first step towards restoring the confidence of Saudi and other foreign investors in Pakistan.

The fund plans to invest in fast-growing private businesses, particularly in agriculture, mining, construction and other industries. It will also assess commercial opportunities emerging from the government's land bank monetisation programme, including projects involving airports, motorways, ports and maritime development.

The initiative is intended to unlock the economic value of underutilised public land through transparent investments on commercial terms. The fund will also explore business opportunities across Saudi Arabia, including in its holy cities.

Institutions from both countries may also be invited to acquire equity stakes in the fund management company. Council members from Saudi Arabia and Pakistan attended the ceremony, while Pakistan's council co-chairman and Fatima Group Chairman Fawad Mukhtar participated virtually.

Later, Prince Mansour, accompanied by a high-level Saudi business delegation, visited the Karachi Port Trust (KPT) headquarters and South Asia Pakistan Terminals Limited (SAPTL-HPH) to examine investment opportunities and promote cooperation in the maritime sector.

KPT Chairman Rear Admiral (retd) Shahid Ahmed, Maritime Affairs Secretary Captain (retd) Muhammad Khurram Agha and Gwadar Port Authority Chairman Noorul Haq Baloch received the delegation. Prince Mansour and the federal secretary jointly chaired a subsequent meeting.

The KPT chairman briefed the delegation on the port's transformation into a modern fifth-generation facility, its record performance during the financial year 2025-26, growing transshipment activity and ongoing modernisation projects.

He highlighted investment opportunities in the proposed 140-acre Maritime Business District and the development of the Manora Shipyard. He also outlined strategic connectivity projects, including the M-10 Port Link, KPT-Pipri Freight Corridor, ML-1 railway connection and East-West Wharves Connectivity Bridge.

Prince Mansour expressed keen interest in the Maritime Business District, green port initiatives, terminal infrastructure expansion and connectivity projects, describing them as promising avenues for Saudi investment and joint ventures.

During the visit to SAPTL, the delegation inspected the terminal's operational capabilities, modern infrastructure and cargo-handling facilities.

(WITH INPUTS FROM REUTERS)