OMM Newsroom
Investors from Pakistan and Saudi Arabia have agreed to establish a private equity fund worth hundreds of millions. Seventy-five percent of the capital will be invested in Pakistan, with the remaining 25 percent going to Saudi Arabia.
According to AnewZ, the Saudi-Pakistani Joint Business Council signed a memorandum of understanding on Monday to establish the fund. It has been described as worth “several hundred million,” but the exact amount and currency have not been disclosed. The fund could grow as new investment opportunities emerge.
Private investors from both countries are expected to contribute equally to the fund. The agreement is subject to approval by regulatory authorities in both countries.
The fund will cover agriculture, mining, industry and construction, as well as potential investments in airports, highways, ports and maritime projects.
Saudi investment and joint projects
The agreement is the latest step in Saudi Arabia’s efforts to increase investment in Pakistan and strengthen commercial ties between the two countries.
In August, Prince Mansour bin Mohammed Al Saud, chairman of the Saudi-Pakistani Joint Business Council, met Pakistani Prime Minister Shehbaz Sharif in Islamabad. Saudi investors had expressed interest in agriculture, ports, highways, airport management outsourcing, real estate, energy and information technology, according to the Pakistani Prime Minister’s Office.
Business leaders and representatives of major financial institutions from both countries also took part in discussions on the latest agreement.
In June, Pakistan invited Saudi investors to take part in three major highway projects, including construction of the long-delayed Sukkur-Hyderabad M6 motorway. The project is expected to form part of a continuous road network linking Karachi port with Peshawar and, in the future, Gilgit.
The two countries have also agreed to increase Pakistan’s agricultural and food exports to Saudi Arabia. Their target is to raise exports to $3 billion within two years.
Economic partnership and defense ties
Pakistan and Saudi Arabia have maintained close ties since establishing diplomatic relations in 1947. Defense cooperation, financial support and energy partnership are among the main pillars of the relationship.
In September 2025, the two countries signed a Strategic Mutual Defense Agreement. Under the pact, aggression against either party will be considered aggression against both.
In August 2026, Pakistan, Saudi Arabia and Türkiye signed a trilateral defense agreement in Mecca, pledging to strengthen collective security and military cooperation. These agreements have further formalized the countries’ long-term strategic ties, while the proposed investment fund signals growing attention to economic cooperation.
For Pakistan, the fund could help attract foreign capital needed in mining, agriculture and infrastructure. Saudi Arabia, meanwhile, is seeking investment opportunities beyond oil under its Vision 2030 economic diversification program.
Whether the fund delivers tangible economic benefits will depend on how quickly the agreement leads to investment; regulatory approvals and specific projects are still pending.
