KARACHI, November 9, 2026: The Saudi-Pakistan Joint Business Council has signed a memorandum of understanding (MoU) to establish a private equity fund worth hundreds of millions, with 75% of its proposed investments earmarked for Pakistan and the remaining 25% for Saudi Arabia.
The agreement, signed at a ceremony in Karachi on Monday, aims to strengthen bilateral investment cooperation by directing private capital into agriculture, mining, construction, infrastructure and other high-growth sectors.
Under the proposed arrangement, Saudi and Pakistani private investors will contribute equally to the fund, creating a joint investment platform designed to support commercially viable projects in both countries.
Speaking at the ceremony, Prince Mansour bin Mohammed Al Saud said Saudi Arabia and Pakistan shared a longstanding relationship that extended beyond formal agreements.
He said the proposed fund would provide a stronger commercial foundation for bilateral relations and create opportunities for investors seeking reliable partnerships and emerging markets.
Prince Mansour described Pakistan as a natural partner for Saudi Arabia, saying Saudi investors were looking for markets where they could pursue growth with confidence.
He added that a detailed assessment of Pakistan’s economy had identified improving economic conditions and investment opportunities.
According to the Saudi prince, the initiative would translate years of discussions and assessments into practical investments capable of benefiting businesses and communities in both countries.
Arif Habib Group Chairman Arif Habib welcomed the agreement, describing it as an expression of confidence in Pakistan’s investment potential.
He said perceptions surrounding Pakistan’s economy had often overshadowed available commercial opportunities, while the proposed fund demonstrated investors’ willingness to pursue projects based on their economic prospects.
Habib emphasized that Pakistani investors were taking the lead in demonstrating confidence in the domestic economy, with Saudi partners joining them in exploring investment opportunities.
He also highlighted the potential of the government’s land bank monetization programme, saying commercially structured investments could transform underutilized public assets into productive economic resources.
Fund to target agriculture, mining and infrastructure
The proposed Saudi-Pakistan private equity fund will focus on high-growth private businesses across several sectors, including agriculture, mining, construction and related industries.
It will also evaluate investment opportunities emerging from the government’s programme to unlock the commercial value of public land and infrastructure assets.
Potential projects include airports, motorways, ports and maritime infrastructure, where private investment could support development and improve the productive use of existing assets.
The fund will also explore commercial investment opportunities across Saudi Arabia, including projects in the Kingdom’s holy cities.
Under the MoU, institutions from both countries may be invited to acquire equity stakes in the fund management company.
The initial proposed fund is valued at hundreds of millions, although its exact capitalization and currency denomination were not specified in the announcement.
Its investment capacity could be expanded depending on the availability of commercially attractive opportunities across different sectors.
The agreement outlines the proposed investment structure, with further arrangements required to operationalize the fund and implement individual projects.
Members of the Saudi-Pakistan Joint Business Council from both countries attended the signing ceremony.
Fawad Mukhtar, Chairman of Fatima Group and Pakistan’s co-chairman of the council, participated virtually.
The initiative represents a step toward expanding private-sector investment cooperation between Pakistan and Saudi Arabia, with an emphasis on commercially driven projects and long-term economic partnerships.