Saudi and Pakistani Investors Sign MoU to Launch Saudi–Pak Private Equity Fund

The Saudi–Pakistan Joint Business Council (SPJBC) have signed today a Memorandum of Understanding (MoU) to establish the Saudi–Pakistan Private Equity Fund. The signing was attended by Members of the Council from both two countries. From the Pakistani side, Mr. Fawad Mukhtar, Co-Chair of the Council and Chairman, Fatima Group, joined virtually. Members present in person included Mr. Zafar Masud, President & CEO, The Bank of Punjab, Mr. Nassir Saleem, President & CEO, Habib Bank Limited, Mr. Yousaf Hussain, President & CEO, Faysal Bank Limited, and Mr. Maqsood Ismail, Director, Ismail Industries Limited. Dr. Gohar Ejaz, Chairman, Lake City Group, Lord Zameer Choudrey, Chairman, Bestway Group, and Mr. Jawaid Iqbal, President & CEO, United Bank Limited, also joined virtually.

From the Saudi side, the signing was attended by H.H Prince Mansour bin Mohammad Al Saud, Chairman of the (SPJBC), and both vice chairman’s council Mr. Mohammad bin Abdukaziz Al Ajlan (CEO of Al Ajlan Group), Mr. Abdulaziz Bin Ali Al Ashrafi (Tayba Group), and council members: Dr. Mohammed Khan (RAEM Group), Mr. Zaid Al Sharif (Alsharif group), Eng. Mohammed Al Mufarij (CEO Saudi Meters Company), Dr. Mohammed Al-Sowaidan (CEO of international investment Gare), Abdallah Al Muhnna (CEO of SAFA Investment), Mr. Abdulrahman Ayedh Algahtani, (CEO of Somuo Investment), Mr. Hani Baothman (CEO of Bin Dawood Investment), Mr. Ghassan Amoudi (CEO of ASYAD Group), Mr. Feras Albakri (Albakri Group), Barrister Habil Ahmed Khan (CEO of Welt Konnect) and Mr. Mansour Chaudhry (CEO of Barq Pakistan).

The Council was formed by the Governments of the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan, in coordination with both countries high committee to deepen bilateral private-sector trade and investment.

This MoU is the outcome of a series of meetings of the Saudi–Pakistan Joint Business Council which concluded and proposed to have an initial size of multi-hundred million and is envisaged to grow into a bigger scale figure fund, based on the opportunities on all sectors. Saudi and Pakistani private investors will contribute equally to the Fund, while 75% of the fund shall be invested in Pakistan and 25% in Saudi Arabia projects.

The Fund intends to invest in high-growth private businesses, including in agriculture, mining, and industries including construction. It will also explore commercial projects arising from the Government of Pakistan’s programme to monetise its land bank, including airports and Motorways Development, port and maritime development. This will help unlock the economic value of under-utilised public land through commercially structured, transparent investments. The fund will also seek commercial investments across KSA, including in the holy cities. The MOU allows for institutions on both sides to be invited to participate in the equity of the fund management company.

Speaking at the signing, His Highness Prince Mansour bin Mohammad Al Saud said, "The Kingdom of Saudi Arabia and Pakistan are bound by a friendship and kinship that run deeper than any agreement. That bond has always been strong in spirit; this fund now will give it an equally strong commercial footing. Pakistan is a natural partner for the Kingdom, and Saudi investors are looking for partners and markets where they can grow with confidence. Having looked closely at Pakistan, what we see today is a more stable economy with real opportunities. By investing side by side with our Pakistani brothers, in both our countries, we are turning years of contemplation and studies into on ground investment that benefits both our peoples and building a partnership designed to last."

Mr. Arif Habib said, "This fund is a vote of confidence in profitable investment opportunities in Pakistan. For too long, perceptions of Pakistan have clouded the reality, and this agreement shows that serious investors are ready to act on that reality. Pakistani investors are putting their contribution as the lead in the confidence in Pakistan’s economy, and our Saudi brothers are investing alongside us. Directing capital towards the monetisation of the government's land bank will turn idle assets into productive investment. I am grateful to His Highness Prince Mansour and to colleagues on both sides for the time, patience and goodwill they have devoted to bringing this fund to life. We see it as the first step towards restoring the confidence of Saudi and wider foreign investors in Pakistan."

The signing marks a new chapter in Saudi–Pakistan economic cooperation, in which a long friendship between the two nations becomes a shared investment in their future. The establishment of the fund shall comply with the regulatory requirements of the Governments of the Kingdom of Saudi Arabia and the Islamic Republic of Pakistan. Once approvals are in place, the two sides will move ahead with the fund's structuring and first investments.