ISLAMABAD: The Saudi-Pakistan Joint Business Council (SPJBC) has signed a Memorandum of Understanding (MoU) to establish the Saudi-Pakistan Private Equity Fund, with private investors from both countries to contribute equally to the proposed fund.
The signing was attended by members of the council from Saudi Arabia and Pakistan. The MoU is the outcome of a series of SPJBC meetings and proposes an initial size of multi-hundred million, with the fund envisaged to grow to a larger scale on the basis of opportunities across sectors.
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 council was formed by the governments of the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan, in coordination with the high committee of both countries, to deepen bilateral private-sector trade and investment.
The fund intends to invest in high-growth private businesses, including agriculture, mining and industries such as construction. It will also explore commercial projects arising from the Government of Pakistan’s programme to monetise its land bank, including airports, Motorways Development, and port and maritime development.
According to the statement, the initiative will help unlock the economic value of under-utilised public land through commercially structured and transparent investments. The fund will also seek commercial investments across the Kingdom of Saudi Arabia, including in the holy cities. The MoU allows institutions on both sides to be invited to participate in the equity of the fund management company.
From the Pakistani side, Mr Fawad Mukhtar, Co-Chair of the Council and Chairman of Fatima Group, joined virtually. Members present in person included Mr Zafar Masud, President and CEO of The Bank of Punjab; Mr Nassir Saleem, President and CEO of Habib Bank Limited; Mr Yousaf Hussain, President and CEO of Faysal Bank Limited; and Mr Maqsood Ismail, Director of Ismail Industries Limited. Dr Gohar Ejaz, Chairman of Lake City Group; Lord Zameer Choudrey, Chairman of Bestway Group; and Mr Jawaid Iqbal, President and CEO of United Bank Limited, also joined virtually.
From the Saudi side, the signing was attended by H.H. Prince Mansour bin Mohammad Al Saud, Chairman of the SPJBC; the council’s vice chairmen Mr Mohammad bin Abdulaziz Al Ajlan, CEO of Al Ajlan Group, and Mr Abdulaziz Bin Ali Al Ashrafi of Tayba Group; and council members Dr Mohammed Khan of RAEM Group, Mr 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, Mr Abdulrahman Ayedh Algahtani, CEO of Somuo Investment, Mr Hani Baothman, CEO of Bin Dawood Investment, Mr Ghassan Amoudi, CEO of ASYAD Group, Mr Feras Albakri of Albakri Group, Barrister Habil Ahmed Khan, CEO of Welt Konnect, and Mr Mansour Chaudhry, CEO of Barq Pakistan.
Speaking at the signing, H.H. Prince Mansour bin Mohammad Al Saud said Saudi Arabia and Pakistan were bound by a friendship and kinship deeper than any agreement. He said the fund would give that bond a 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,” he said. “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.”
Mr Arif Habib said the fund was 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,” he said. “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.”
He thanked Prince Mansour and colleagues on both sides for their role in bringing the fund to life, calling it a first step towards restoring the confidence of Saudi and wider foreign investors in Pakistan.
The signing marks a new chapter in Saudi-Pakistan economic cooperation. The establishment of the fund will comply with the regulatory requirements of the governments of Saudi Arabia and Pakistan. Once approvals are in place, the two sides will move ahead with the fund’s structuring and first investments.
