Investors from Saudi Arabia and Pakistan have agreed to set up a joint private equity fund, in a new step to deepen private-sector trade and investment between the two countries. The Saudi-Pakistan private equity fund will start at a size of several hundred million dollars, with investors from both countries contributing equally.
In Karachi on Monday, November 9, the Saudi-Pakistan Joint Business Council signed the memorandum of understanding for the fund. Three-quarters of the money will go to projects in Pakistan, while the rest will be invested in Saudi Arabia.
Private businesses in agriculture, mining and construction are the fund’s first targets. It will also look at the government’s plan to commercialise public land and assets — airports, motorways, ports and maritime projects — and, in Saudi Arabia, at commercial investments including projects in the holy cities.
What the Saudi-Pakistan private equity fund will back
The agreement also lets institutions from both countries take a stake in the fund management company. The fund’s set-up and its first investments still need regulatory approvals in both countries, and its structure will be finalised once those approvals come through.
The council said the fund’s initial size is “multi-hundred million” and is expected to expand based on the opportunities it finds across sectors. Dawn reported the launch on Monday, and ProPakistani reported that the memorandum was signed on November 9.
A year of closer Saudi-Pakistan ties
The fund follows a year of steady work between the two countries. The council’s chairman, Prince Mansour bin Mohammad Al Saud, had called on Prime Minister Muhammad Shehbaz Sharif during a visit to Pakistan in August. The Prime Minister’s Office said the Saudi side showed interest in agriculture, ports, highways and airport outsourcing, real estate, energy, power distribution and information technology.
Pakistan and Saudi Arabia, alongside Turkiye, signed a joint defence agreement on August 7, pledging to strengthen collective security and deepen defence cooperation. Later that month, the two countries agreed to lift Pakistani agricultural and food exports to the Gulf state to $3 billion, and in June Pakistan invited Saudi investors to join the long-awaited Sukkur-Hyderabad Motorway (M6) and two other highway projects.
The fund fits that pattern. The defence pact deepened security ties in August, and the fund now adds a private-sector investment track, with farms, ports, roads and power at the centre of both conversations.
For Pakistani businesses, the fund offers a new source of capital at a time when the government is pushing export-led growth. PM tells exporters to lift performance as Pakistan targets export-led growth Private firms in farming, mining and construction could tap Saudi money without waiting for state-to-state deals, while the commercialisation of airports, motorways and ports could bring Gulf investment into infrastructure that Pakistan has long struggled to fund. The test will be the approvals: until regulators in both countries sign off, the fund stays a signed agreement rather than money on the ground.
Regulatory scrutiny of new investment vehicles is already in focus in Pakistan. The Securities and Exchange Commission of Pakistan has been pressing for fuller disclosures from companies heading to market, as it did with retailer Khaadi ahead of its proposed listing. The push also sits beside wider regional trade efforts, with Economic Cooperation Organization ministers due to meet in Islamabad on November 15 and 16. ECO Council of Ministers meeting set for Nov 15-16 The August defence agreement, signed with Turkiye as the third party, showed how closely the security and economic tracks now run together. Turkiye Azerbaijan unity: Erdogan, Aliyev end rift
Frequently asked questions
What is the Saudi-Pakistan private equity fund?
It is a joint fund agreed by investors from Saudi Arabia and Pakistan. The Saudi-Pakistan Joint Business Council signed a memorandum of understanding for it in Karachi on November 9, 2026.
How much of the fund will be invested in Pakistan?
Three-quarters of the fund will be invested in Pakistan, and the remaining quarter will go to projects in Saudi Arabia. Investors from both countries will contribute equally.
Which sectors will the fund target?
The fund will target private businesses in agriculture, mining and construction. It will also explore the commercialisation of public land and assets, including airports, motorways, ports and maritime projects. In Saudi Arabia, it will consider commercial investments, including projects in the holy cities.
When will the fund start investing?
The fund’s establishment and its first investments are subject to regulatory approvals in both countries. Its structure and initial investments will be finalised after those approvals are secured.
Who runs the fund?
The Saudi-Pakistan Joint Business Council, which was formed by the governments of Pakistan and Saudi Arabia to promote private-sector trade and investment. Institutions from both countries may take part in the equity of the fund management company.
