Saudi-Pakistan Investors Launch Multi-Hundred Million Dollar Fund

Investors in Pakistan and Saudi Arabia launched a private equity fund on Monday to expand private sector trade across both economies.

Formed by the governments of both countries, the Saudi-Pakistan Joint Business Council announced that the initial size of the fund is “multi-hundred million”, with expectations for future expansion based on sector opportunities.

Three-quarters of the newly established fund will flow into projects located inside Pakistan, while the remaining portion will be invested in Saudi Arabian projects, according to a statement from the council. The initiative is part of a broader bilateral effort by Islamabad and Riyadh to deepen two-way private sector trade and investment.

The launch coincides with a period where Islamabad and Riyadh are deepening longstanding ties, particularly in defence, amid few signs of a breakthrough in the months-long US-Iran conflict. The two nations maintain close bilateral cooperation supported by frequent high-level diplomatic exchanges.

In August, the council’s chairman, Prince Mansour bin Mohammad Al Saud, visited Pakistan and met with Prime Minister Muhammad Shehbaz Sharif. During that meeting, discussions focused on expanding economic cooperation, and the Saudi side expressed interest in investment opportunities across agriculture, ports, highways, airport outsourcing, real estate, energy, power distribution, and information technology sectors.

Cooperation between Pakistan and Saudi Arabia has expanded through several recent agreements and proposals. On August 7, Pakistan and Saudi Arabia, alongside Turkiye, signed a joint defence agreement to strengthen collective security, deepen defence cooperation, and promote regional peace and stability.

Later in August, the two countries agreed to boost Pakistani agricultural and food exports to the Gulf state up to $3 billion. Earlier in June, Pakistan also invited Saudi investors to participate in constructing the Sukkur-Hyderabad Motorway (M6) and two other major highway projects, designed to provide uninterrupted motorway connectivity from Karachi Port to Peshawar and onward to Gilgit.