A joint council of Saudi Arabian and Pakistani investors launched a private equity fund on Monday as part of the wider push by both countries to deepen two-way private sector trade and investment. The Saudi-Pakistan Joint Business Council, which was formed by the governments of both countries, described the initial size of the fund as multi-hundred million and indicated that it is expected to expand based on opportunities across sectors. Three-fourths of the fund will be invested in Pakistan, while the remaining portion will go into Saudi Arabian projects. That split places the larger share of capital in Pakistan and gives the fund a clear weighting toward the Pakistani economy, while still keeping a meaningful allocation for projects in the Kingdom.
The launch arrives at a time when Islamabad and Riyadh are deepening longstanding ties, especially in defence, amid few signs of a breakthrough in the months-long conflict between the United States and Iran. Against that backdrop, the fund adds an economic and private sector dimension to a relationship that has often been discussed in strategic terms. By pooling capital from investors in both countries and directing it toward projects on each side, the council is aiming to turn political goodwill into commercial activity that can be measured in investments made and businesses supported.
The fund follows a series of high-level business engagements between the two sides in recent months. In October, the chairman of the Saudi-Pakistan Joint Business Council, Prince Mansour bin Mohammad Al Saud, visited Pakistan at the head of a high-level Saudi business delegation. During the visit, Prince Mansour bin Mohammad Al Saud and his delegation met Pakistan’s political leadership and engaged with senior officials, chambers of commerce and leading business groups to explore ways of enhancing bilateral trade and investment. The visit placed the council directly in contact with the institutions and business communities that will matter most as the fund begins to look for opportunities to deploy capital.
An earlier visit took place in August, when a high-level Saudi business delegation led by the same chairman called on Prime Minister Shehbaz Sharif at the Prime Minister House. Speaking on the occasion, Prime Minister Shehbaz Sharif said Pakistan was keen to elevate its economic relationship with the Kingdom of Saudi Arabia into a mutually beneficial strategic economic relationship, in line with the vision of Crown Prince and Prime Minister Mohammed bin Salman. The new private equity fund can be read as a concrete step in that direction, since it creates a dedicated pool of capital meant to support projects in both countries. As the council continues to look for opportunities across different sectors, the size and reach of the fund will depend on the projects it is able to identify and finance.
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