Saudi and Pakistani Investors Sign MoU to Launch Joint Private Equity Fund

Investors from Saudi Arabia and Pakistan have signed a memorandum of understanding to set up a joint private equity fund with an initial size of several hundred million dollars, according to details shared by the Saudi-Pakistan Joint Business Council. Contributions to the fund are expected to be split equally between investors from the two countries.

Under the proposed structure, about 75 percent of the fund's capital will be deployed in Pakistan, while the remaining 25 percent will be invested in Saudi Arabia. The fund is set to focus on private businesses across sectors such as agriculture, mining, construction and other industries.

A key part of the strategy involves exploring opportunities tied to the Pakistani government's push to commercialise public land and assets. These include airports, motorways, ports and maritime development projects, which the fund will assess as potential investment avenues. In Saudi Arabia, the fund will also look at commercial ventures, including projects in the holy cities.

The memorandum also allows institutions from both countries to take part in the equity of the fund management company, opening the door for broader participation by financial and corporate entities. The Joint Business Council was established by the governments of Pakistan and Saudi Arabia to promote private-sector trade and investment between the two nations.

Any establishment of the fund and its subsequent investments will remain subject to regulatory approvals in both countries. The fund's final structure and its initial investments are expected to be confirmed only after the necessary clearances are secured.

The agreement reflects growing economic engagement between Riyadh and Islamabad, with private-sector collaboration positioned alongside government-level initiatives. For Pakistani markets, a fund of this scale could signal fresh foreign capital flows into infrastructure and industrial sectors, though the timeline will depend on how quickly regulatory processes move forward.