Key Takeaways
- • The Saudi-Pakistan Joint Business Council (SPJBC) signed an MoU to establish the Saudi-Pakistan Private Equity Fund, with an initial size described as multi-hundred million (exact figure not disclosed).
- • Saudi and Pakistani private investors will contribute equally to the fund, with 75 percent of capital directed to Pakistan and 25 percent to Saudi Arabia.
- • The fund will target high-growth private businesses in agriculture, mining and construction, and explore projects tied to Pakistan's government land-monetisation programme, including airports, motorways, ports and maritime development.
- • The MoU allows institutions on both sides to be invited to take equity in the fund management company.
- • Launch remains subject to regulatory approvals in both countries before structuring and first investments proceed.
Summary
The Saudi-Pakistan Joint Business Council (SPJBC) has signed a Memorandum of Understanding to establish the Saudi-Pakistan Private Equity Fund. The signing was attended by council members from both countries, including HH Prince Mansour bin Mohammad Al Saud, Chairman of the SPJBC, and the council's two Vice-Chairmen, Mohammad bin Abdulaziz Al Ajlan of Al Ajlan Group and Abdulaziz Bin Ali Al Ashrafi of Tayba Group. The council was formed by the governments of Saudi Arabia and Pakistan to deepen bilateral private-sector trade and investment. According to the source, the MoU is the outcome of a series of council meetings.
The fund is proposed with an initial size of multi-hundred million, with the expectation that it will grow based on opportunities across sectors. Saudi and Pakistani private investors will contribute equally. Of the capital, 75 percent is to be invested in Pakistan and 25 percent in Saudi Arabia.
The fund intends to invest in high-growth private businesses, including agriculture, mining and construction. It will also explore commercial projects arising from Pakistan's programme to monetise its land bank, including airports and motorways, and port and maritime development. The fund will also seek commercial investments across the Kingdom, including in the holy cities. The MoU permits institutions on both sides to be invited to participate in the equity of the fund management company.
Prince Mansour bin Mohammad Al Saud said the fund would give the long-standing bond between the two countries a commercial footing, describing Pakistan as a natural partner and citing what he called a more stable economy with real opportunities. Arif Habib described the fund as a vote of confidence in profitable investment opportunities in Pakistan and said it would be the first step toward restoring the confidence of Saudi and wider foreign investors.
The establishment of the fund must comply with the regulatory requirements of both governments. Once approvals are in place, the two sides will proceed with structuring and first investments. No fund size, manager name or timeline for closing was disclosed in the source.
The fund is proposed with an initial size of multi-hundred million, with the expectation that it will grow based on opportunities across sectors. Saudi and Pakistani private investors will contribute equally. Of the capital, 75 percent is to be invested in Pakistan and 25 percent in Saudi Arabia.
The fund intends to invest in high-growth private businesses, including agriculture, mining and construction. It will also explore commercial projects arising from Pakistan's programme to monetise its land bank, including airports and motorways, and port and maritime development. The fund will also seek commercial investments across the Kingdom, including in the holy cities. The MoU permits institutions on both sides to be invited to participate in the equity of the fund management company.
Prince Mansour bin Mohammad Al Saud said the fund would give the long-standing bond between the two countries a commercial footing, describing Pakistan as a natural partner and citing what he called a more stable economy with real opportunities. Arif Habib described the fund as a vote of confidence in profitable investment opportunities in Pakistan and said it would be the first step toward restoring the confidence of Saudi and wider foreign investors.
The establishment of the fund must comply with the regulatory requirements of both governments. Once approvals are in place, the two sides will proceed with structuring and first investments. No fund size, manager name or timeline for closing was disclosed in the source.
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