Investors from both countries agree to establish a joint fund with equal capital contributions, allocating 75% of its investments to Pakistan and 25% to Saudi Arabia, targeting agriculture, mining, industry, and infrastructure.

Riyadh | BETH

November 9, 2026

The Saudi-Pakistani Joint Business Council signed a memorandum of understanding on Monday to establish a private equity investment fund with an initial target capital of hundreds of millions of dollars, in a move aimed at expanding economic cooperation between the two countries and strengthening private-sector direct investment.

Under the agreement, Saudi and Pakistani investors will contribute equally to the fund's capital, with 75% of its investments allocated to projects in Pakistan and 25% to projects in Saudi Arabia. The fund's capital may be increased depending on available investment opportunities.

Target Sectors and Investment Opportunities

The fund will target high-growth private-sector companies, particularly in agriculture, mining, and various industries, including construction.

It will also explore opportunities in airport development, highways, ports, and maritime projects, as part of Pakistan's efforts to utilize underdeveloped government assets and land and transform them into productive investments.

In Saudi Arabia, targeted opportunities include commercial investments across several sectors, including projects in the two holy cities of Makkah and Madinah.

Participation of Business Leaders

The signing ceremony was attended by Prince Mansour bin Mohammed Al Saud, Chairman of the Saudi-Pakistani Joint Business Council, alongside investors and executives from financial institutions and companies in both countries.

Prince Mansour said the fund would transform years of studies and discussions into practical investments benefiting both economies, while Pakistani businessman Arif Habib described the agreement as an indication of investor confidence in Pakistan's economic opportunities.

The memorandum allows institutions from both countries to participate in the ownership of the fund management company. Establishment procedures will be completed in accordance with Saudi and Pakistani regulatory requirements before actual investments begin.

BETH Analysis | From Economic Cooperation to Joint Investment

The initiative is distinguished by its equal distribution of funding responsibilities between Saudi and Pakistani investors, rather than limiting the relationship to investment flows from one side.

Allocating the majority of the fund's resources to Pakistani projects also creates opportunities to benefit from the country's agricultural and mineral resources, productive assets, and infrastructure, while allowing Pakistani investors to participate in opportunities within the Saudi market.

The fund's economic value will depend on its ability to translate the agreement into financed and productive projects that generate returns for investors while creating jobs and stimulating business activity in both countries.

The agreement represents a step toward expanding Saudi-Pakistani economic relations beyond traditional trade ties and into long-term, institutional joint investment.