Islamabad: The Saudi–Pakistan Joint Business Council (SPJBC) has signed a Memorandum of Understanding to establish the Saudi–Pakistan Private Equity Fund, in a step aimed at deepening private-sector investment links between the two countries.
The signing was attended by members of the council from Saudi Arabia and Pakistan. From the Pakistani side, Fawad Mukhtar, Co-Chair of the Council and Chairman of Fatima Group, joined the proceedings virtually. Those present 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 participated virtually.
The Saudi delegation included H.H. Prince Mansour bin Mohammad Al Saud, Chairman of the SPJBC, along with the council’s vice chairmen Mohammad bin Abdukaziz Al Ajlan, CEO of Al Ajlan Group, and Abdulaziz Bin Ali Al Ashrafi of Tayba Group. Other Saudi-side council members in attendance included Dr Mohammed Khan of RAEM Group, Zaid Al Sharif of Alsharif Group, Eng Mohammed Al Mufarij, CEO of Saudi Meters Company, Dr Mohammed Al-Sowaidan, CEO of international investment Gare, Abdallah Al Muhnna, CEO of SAFA Investment, Abdulrahman Ayedh Algahtani, CEO of Somuo Investment, Hani Baothman, CEO of Bin Dawood Investment, Ghassan Amoudi, CEO of ASYAD Group, Feras Albakri of Albakri Group, Barrister Habil Ahmed Khan, CEO of Welt Konnect, and Mansour Chaudhry, CEO of Barq Pakistan.
The council was constituted by the governments of the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan, in coordination with the high committee of the two countries, to promote bilateral private-sector trade and investment.
According to the announcement, the MoU follows a series of meetings of the Saudi–Pakistan Joint Business Council. The proposed fund is expected to begin with an initial size of multi-hundred million and is envisaged to grow into a larger-scale fund, depending on opportunities across sectors. Saudi and Pakistani private investors will contribute equally to the fund. Under the proposed structure, 75 per cent of the fund will be invested in Pakistan and 25 per cent in projects in Saudi Arabia.
The fund plans to invest in high-growth private businesses, including agriculture, mining and industries such as construction. It will also examine commercial projects emerging from the Government of Pakistan’s programme to monetise its land bank, including airports, motorways development, ports and maritime development.
The initiative is expected to help unlock the economic value of under-utilised public land through commercially structured and transparent investment. The fund will also look for commercial investment opportunities across Saudi Arabia, including in the holy cities. The MoU allows institutions from both sides to be invited to participate in the equity of the fund management company.
Speaking at the signing, H.H. Prince Mansour bin Mohammad Al Saud said the Kingdom of Saudi Arabia and Pakistan were linked by friendship and kinship deeper than any agreement.
“That bond has always been strong in spirit; this fund now will give it an equally strong commercial footing. Pakistan is a natural partner for the Kingdom, and Saudi investors are looking for partners and markets where they can grow with confidence. Having looked closely at Pakistan, what we see today is a more stable economy with real opportunities. By investing side by side with our Pakistani brothers, in both our countries, we are turning years of contemplation and studies into on ground investment that benefits both our peoples and building a partnership designed to last,” he said.
Arif Habib described the fund as a vote of confidence in profitable investment opportunities in Pakistan.
“For too long, perceptions of Pakistan have clouded the reality, and this agreement shows that serious investors are ready to act on that reality. Pakistani investors are putting their contribution as the lead in the confidence in Pakistan’s economy, and our Saudi brothers are investing alongside us. Directing capital towards the monetisation of the government's land bank will turn idle assets into productive investment. I am grateful to His Highness Prince Mansour and to colleagues on both sides for the time, patience and goodwill they have devoted to bringing this fund to life. We see it as the first step towards restoring the confidence of Saudi and wider foreign investors in Pakistan,” he said.
The signing has been described as a new chapter in Saudi–Pakistan economic cooperation, turning the long-standing relationship between the two nations into a shared investment in their future.
The establishment of the fund will be subject to the regulatory requirements of the governments of Saudi Arabia and Pakistan. Once approvals are secured, the two sides will proceed with the fund’s structuring and initial investments.
