Key Takeaways
- • A proposed Saudi-Pakistan private equity fund is targeting an initial $500 million, with the potential to expand to several billion dollars, according to Arif Habib, chairman of Arif Habib Group, who spoke to Arab News.
- • Capital allocation is set at 75% for Pakistan and 25% for Saudi Arabia, with Saudi and Pakistani investors contributing equally, per the Saudi-Pakistan Joint Business Council.
- • Regulatory approvals are the gating item: Habib estimates the process could take at least three months, with management company registration already underway in relevant jurisdictions.
- • Nine Saudi groups, including Al Ajlan Group, Tayba Group and ASYAD Holding Group, participated in the launch, but their participation does not constitute confirmed financial commitments.
- • Target sectors include agriculture, mining, technology, manufacturing, construction, real estate and infrastructure, with Pakistan's Main Line-1 railway (Karachi-Peshawar) cited as a potential project.
Summary
A proposed Saudi-Pakistan private equity fund is aiming to raise an initial $500 million that could eventually grow to several billion dollars, a Pakistani investor in the fund told Arab News. Habib, chairman of Arif Habib Group, who signed a memorandum of understanding representing Pakistani investors at Monday's launch, said the agreement marks the first step toward establishing the vehicle. Implementation depends on securing regulatory approvals, attracting committed capital and identifying commercially viable projects.
According to the Saudi-Pakistan Joint Business Council, which was formed by the governments of both countries, three-quarters of the fund will be invested in Pakistan and the remainder in Saudi Arabian projects. Saudi and Pakistani investors would contribute equally. Habib said the regulatory process could take at least three months, after which investors will be invited to contribute. Formal commitments and disbursements will follow the fund's establishment.
A list of Saudi participants includes Al Ajlan Group, Tayba Group, RAEM Group, Al Sharif Group, Saudi Meters Company, Sumou Global Investment, Bin Dawood Investment, ASYAD Holding Group and Red Sea Gateway Terminal. These businesses span investment, real estate, energy, infrastructure and logistics, but their participation does not constitute confirmed financial commitments. The fund would have a board and management committee with Saudi and Pakistani representatives, and a chief executive appointed by mutual consultation.
Habib cited several identified but not yet formalized opportunities, including Pakistan's Main Line-1 railway linking Karachi and Peshawar and plans to develop government-owned land. In Saudi Arabia, potential sectors include technology, petroleum, construction and real estate. Habib acknowledged that previous bilateral investment agreements often failed to translate into substantial investment, but argued the initiative differs because private investors are leading. Prince Mansour bin Mohammad Al-Saud, chairman of the Saudi-Pakistan Joint Business Council, said in a Monday statement that the fund would strengthen the commercial foundations of the relationship. Habib pointed to recent Saudi business delegation visits, improving economic stability and government support as factors encouraging investor interest.
According to the Saudi-Pakistan Joint Business Council, which was formed by the governments of both countries, three-quarters of the fund will be invested in Pakistan and the remainder in Saudi Arabian projects. Saudi and Pakistani investors would contribute equally. Habib said the regulatory process could take at least three months, after which investors will be invited to contribute. Formal commitments and disbursements will follow the fund's establishment.
A list of Saudi participants includes Al Ajlan Group, Tayba Group, RAEM Group, Al Sharif Group, Saudi Meters Company, Sumou Global Investment, Bin Dawood Investment, ASYAD Holding Group and Red Sea Gateway Terminal. These businesses span investment, real estate, energy, infrastructure and logistics, but their participation does not constitute confirmed financial commitments. The fund would have a board and management committee with Saudi and Pakistani representatives, and a chief executive appointed by mutual consultation.
Habib cited several identified but not yet formalized opportunities, including Pakistan's Main Line-1 railway linking Karachi and Peshawar and plans to develop government-owned land. In Saudi Arabia, potential sectors include technology, petroleum, construction and real estate. Habib acknowledged that previous bilateral investment agreements often failed to translate into substantial investment, but argued the initiative differs because private investors are leading. Prince Mansour bin Mohammad Al-Saud, chairman of the Saudi-Pakistan Joint Business Council, said in a Monday statement that the fund would strengthen the commercial foundations of the relationship. Habib pointed to recent Saudi business delegation visits, improving economic stability and government support as factors encouraging investor interest.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.