Saudi and Pakistani investors launch fund worth hundreds of millions of dollars
Saudi and Pakistani private investors have agreed to set up a private equity fund worth "multi-hundred million" dollars, with three-quarters of its planned investments destined for Pakistan, the Saudi-Pakistan Joint Business Council said on Monday.
The council did not disclose the exact size, the currency, individual commitments, target projects or a timetable for first investments. Investors from both countries will contribute equally, and the vehicle will target agriculture, mining, construction and other industrial activities, as well as government-owned land and infrastructure assets in Pakistan, including airports, motorways, ports and maritime projects. The remaining 25% is earmarked for projects in Saudi Arabia, including potential commercial investments in Makkah and Madina.
Prince Mansour bin Mohammad Al Saud, chairman of the council, said the agreement was meant to strengthen commercial cooperation between the two countries. "Pakistan is a natural partner for the Kingdom, and Saudi investors are looking for partners and markets where they can grow with confidence," he said. Pakistani businessman Arif Habib called it "a vote of confidence in profitable investment opportunities in Pakistan", adding that "for too long, perceptions of Pakistan have clouded the reality".
The council said institutions from both countries could later take equity stakes in the fund management company, widening participation beyond the founding investors. Establishment remains subject to regulatory requirements in Saudi Arabia and Pakistan, and the council gave no date for approvals or for the fund to begin operations.
The announcement follows talks between officials from both sides. In August, Prince Mansour met Prime Minister Shehbaz Sharif to discuss cooperation in agriculture, ports, highways, airport outsourcing, real estate, energy, power distribution and information technology, according to the Prime Minister's Office. In June, Pakistan invited Saudi investors into the construction of the Sukkur-Hyderabad Motorway, the M6, and two other major highway projects, and in August the two countries agreed to work towards raising Pakistani agricultural and food exports to Saudi Arabia to as much as $3 billion. The council has not confirmed whether any of those projects will receive financing.
