Pakistani and Saudi investors have agreed to launch a private equity fund worth hundreds of millions, with 75 per cent of the money set to be invested in Pakistan, as the two countries strengthen economic ties.
The Saudi-Pakistan Joint Business Council signed a memorandum of understanding on Monday to establish the fund, described as “multi-hundred-million”, although its exact value and currency remain undisclosed. The fund could expand as new investment opportunities emerge.
Private investors from both countries are expected to contribute equally. Three-quarters of the fund will go towards projects in Pakistan, while the remaining 25 per cent will be invested in Saudi Arabia. The arrangement is subject to regulatory approvals in both countries.
The fund will target agriculture, mining, industry and construction, alongside potential infrastructure investments in airports, motorways, ports and maritime projects.
The agreement marks another step in efforts to boost Saudi investment in Pakistan and strengthen commercial ties between the two countries.
In August, Saudi-Pakistan Joint Business Council chairman Prince Mansour bin Mohammad Al Saud met Prime Minister Shehbaz Sharif in Islamabad. According to Pakistan's Prime Minister's Office, Saudi investors expressed interest in agriculture, ports, highways, airport outsourcing, real estate, energy and information technology.
The latest agreement also involved business leaders and representatives of major financial institutions from both countries.
In June, Pakistan invited Saudi investors to participate in three major highway projects, including the long-delayed Sukkur-Hyderabad M6 motorway. The project is expected to form part of an uninterrupted motorway network linking Karachi Port with Peshawar and, eventually, Gilgit.
The two countries have also agreed to increase Pakistan's agricultural and food exports to Saudi Arabia, targeting $3 billion within two years.
Pakistan and Saudi Arabia have maintained close ties since establishing diplomatic relations in 1947, with defence cooperation, financial support and energy partnerships forming key pillars of their relationship.
In September 2025, the two countries signed a Strategic Mutual Defence Agreement, under which aggression against either would be considered aggression against both.
In August 2026, Pakistan, Saudi Arabia and Türkiye signed a trilateral defence agreement in Mecca, pledging to strengthen collective security and military cooperation.
The agreements have further formalised the countries' longstanding strategic ties, while the proposed investment fund signals a growing focus on economic cooperation.
For Pakistan, the fund could help attract much-needed foreign capital into mining, agriculture and infrastructure. Saudi Arabia, meanwhile, is seeking investment opportunities beyond oil as part of its Vision 2030 economic diversification programme.
Whether the fund delivers meaningful economic benefits will depend on how quickly the agreement moves from paper to investment, with regulatory approvals and concrete projects still to come.
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