Pakistan, Saudi Arabia launch joint investment fund; 75% of capital earmarked for Islamabad

Pakistan and Saudi Arabia have launched a joint private equity fund aimed at boosting bilateral trade, attracting investment and strengthening economic cooperation between the two countries. Under the arrangement, 75% of the fund’s capital will be invested in Pakistan, while the remaining 25% will be directed towards projects in Saudi Arabia, according to Reuters.

The Saudi-Pakistan Joint Business Council (SPJBC), established by the governments of both countries, announced the launch on November 9. The fund’s initial size has been described as “multi-hundred million”, with the possibility of expansion as investment opportunities emerge across different sectors.

The initiative is intended to strengthen private-sector partnerships and channel capital into commercially viable businesses and development projects in both countries.

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Agriculture, mining and infrastructure among key focus areas

The fund will target high-growth private businesses operating in sectors such as agriculture, mining, industry and construction. It will also explore investment opportunities linked to Pakistan’s plans to monetise government-owned land and public assets, including airports, motorways, ports and maritime infrastructure.

The initiative is expected to help unlock the commercial potential of underutilised public assets by bringing them into structured investment arrangements. In Saudi Arabia, the fund will also explore commercial opportunities, including projects in the holy cities of Makkah and Madina.

The memorandum of understanding signed by the two sides allows institutions from both countries to participate in the equity of the fund management company. However, the fund’s final structure and initial investments remain subject to regulatory approvals in Pakistan and Saudi Arabia.

Pakistan and Saudi Arabia seek deeper economic ties

The launch comes amid efforts by Islamabad and Riyadh to translate their longstanding political and diplomatic relationship into stronger commercial partnerships. The two countries have maintained close cooperation, particularly in defence, while also exploring opportunities to expand trade and investment.

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In August, a Saudi business delegation led by SPJBC Chairman Prince Mansour bin Mohammad Al Saud met Pakistan Prime Minister Shehbaz Sharif to discuss ways to strengthen economic cooperation.

According to Pakistan’s Prime Minister’s Office, Saudi investors expressed interest in sectors including agriculture, ports, highways, airport outsourcing, real estate, energy, power distribution and information technology.

The two countries have also discussed expanding Pakistan’s agricultural and food exports to Saudi Arabia to $3 billion. Separately, Pakistan has invited Saudi investors to participate in major highway projects, including the proposed Sukkur-Hyderabad Motorway.