Key Takeaways
- • The Saudi-Pakistan Joint Business Council (SPJBC) signed a memorandum of understanding to establish the Saudi-Pakistan Private Equity Fund, starting with a multi-hundred-million-dollar corpus (reported as "multi-hundred-million-sized" without a precise figure) with ambitions to grow into a much larger, cross-sector vehicle.
- • Saudi and Pakistani private investors will contribute equally, with 75% of capital deployed in Pakistan and 25% in Saudi Arabia, according to a press release cited by Mettis Link News.
- • The fund targets high-growth private businesses in agriculture, mining and construction, and Pakistan government land-bank monetization projects including airports, motorways, and port and maritime development.
- • The MoU allows institutions on both sides to be invited to take equity in the fund management company, and the fund will proceed to structuring and first investments once regulatory approvals from both governments are secured.
Summary
The Saudi-Pakistan Joint Business Council (SPJBC) has signed a memorandum of understanding to set up the Saudi-Pakistan Private Equity Fund, according to Mettis Link News. The fund will begin with a multi-hundred-million-sized corpus and is intended to grow into a considerably larger multi-sector fund. The council was formed by the governments of Saudi Arabia and Pakistan, in coordination with the high committee of both countries, to deepen private-sector trade and investment. The MoU is the outcome of a series of SPJBC meetings.
Saudi and Pakistani private investors will contribute equally to the fund. Per a press release, 75% of the fund will be deployed in Pakistan and 25% in projects in Saudi Arabia. The fund will target high-growth private businesses in agriculture, mining and industries such as construction. It will also pursue commercial projects arising from the Pakistan government's programme to monetize its land bank, including airports, motorways, and port and maritime development, with the stated aim of unlocking under-used public land through transparent, commercially structured investments. Commercial investments across Saudi Arabia, including in the holy cities, are also within scope.
The MoU was signed in the presence of council members from both countries. Prince Mansour bin Mohammad Al Saud, Chairman of the SPJBC, attended the signing on the Saudi side, alongside vice chairmen including Mohammad bin Abdulaziz Al Ajlan (CEO, Al Ajlan Group) and Abdulaziz Bin Ali Al Ashrafi (Tayba Group). On the Pakistani side, Fawad Mukhtar, Co-Chair of the council and Chairman of Fatima Group, joined virtually, as did Dr. Gohar Ejaz, Lord Zameer Choudrey, and Jawaid Iqbal (President and CEO, United Bank Limited). Zafar Masud (The Bank of Punjab), Nassir Saleem (Habib Bank Limited) and Yousaf Hussain (Faysal Bank Limited) attended in person.
Prince Mansour said the fund would give the bilateral friendship a commercial footing and described Pakistan as a natural partner, citing a more stable economy with real opportunities. Arif Habib said the fund reflects confidence in profitable opportunities in Pakistan and described it as a first step toward restoring the confidence of Saudi and wider foreign investors. He said Pakistani investors will lead the contribution, with Saudi partners investing alongside.
The fund's establishment will comply with the regulatory requirements of both governments. Once approvals are in place, the two sides will proceed to structuring the fund and making the first investments.
Saudi and Pakistani private investors will contribute equally to the fund. Per a press release, 75% of the fund will be deployed in Pakistan and 25% in projects in Saudi Arabia. The fund will target high-growth private businesses in agriculture, mining and industries such as construction. It will also pursue commercial projects arising from the Pakistan government's programme to monetize its land bank, including airports, motorways, and port and maritime development, with the stated aim of unlocking under-used public land through transparent, commercially structured investments. Commercial investments across Saudi Arabia, including in the holy cities, are also within scope.
The MoU was signed in the presence of council members from both countries. Prince Mansour bin Mohammad Al Saud, Chairman of the SPJBC, attended the signing on the Saudi side, alongside vice chairmen including Mohammad bin Abdulaziz Al Ajlan (CEO, Al Ajlan Group) and Abdulaziz Bin Ali Al Ashrafi (Tayba Group). On the Pakistani side, Fawad Mukhtar, Co-Chair of the council and Chairman of Fatima Group, joined virtually, as did Dr. Gohar Ejaz, Lord Zameer Choudrey, and Jawaid Iqbal (President and CEO, United Bank Limited). Zafar Masud (The Bank of Punjab), Nassir Saleem (Habib Bank Limited) and Yousaf Hussain (Faysal Bank Limited) attended in person.
Prince Mansour said the fund would give the bilateral friendship a commercial footing and described Pakistan as a natural partner, citing a more stable economy with real opportunities. Arif Habib said the fund reflects confidence in profitable opportunities in Pakistan and described it as a first step toward restoring the confidence of Saudi and wider foreign investors. He said Pakistani investors will lead the contribution, with Saudi partners investing alongside.
The fund's establishment will comply with the regulatory requirements of both governments. Once approvals are in place, the two sides will proceed to structuring the fund and making the first investments.
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