KARACHI: The Saudi-Pakistan Joint Business Council on Monday signed a memorandum of understanding to establish the Saudi-Pakistan Private Equity Fund.
Addressing a ceremony in Karachi in this regard, Prince Mansoor bin Mohammed Al Saud said that the Kingdom of Saudi Arabia and Pakistan are bound by a bond of friendship and brotherhood that is much deeper than any agreement. This relationship has always been strong in spirit, this fund will provide it with an equally strong commercial foundation. Pakistan is a natural partner of the Kingdom and Saudi investors are looking for partners and markets where they can grow with confidence.
He said that after a careful review of Pakistan, today we see a more stable economy and real opportunities. By investing in both countries alongside our Pakistani brothers, we are turning years of deliberation and study into practical investments that will benefit the people of both countries, and are laying the foundation for a lasting partnership.
Arif Habib, Chairman of Arif Habib Group, said that this fund is an expression of confidence in the lucrative investment opportunities in Pakistan. For a long time, perceptions about Pakistan have obscured the reality and this agreement shows that serious investors are ready to take practical steps based on this reality. Pakistani investors are contributing to the confidence in the country’s economy by being at the forefront and our Saudi brothers are investing with us. By diverting capital towards the monetization of the government’s land bank, dormant assets will be converted into productive investments.
He expressed gratitude to Prince Mansour and colleagues on both sides who dedicated their time, patience and goodwill to make this fund a reality. We consider this as the first step towards restoring the confidence of Saudi and other foreign investors in Pakistan.
It should be noted that under this MoU, a proposed joint fund worth hundreds of millions has been established, the future size of which will be broadly based on the opportunities available in each sector. Under the MoU, Saudi and Pakistani private investors will contribute equally to the proposed joint fund, with 75 percent of the fund going to Pakistan and 25 percent to Saudi Arabian projects.
The fund intends to invest in fast-growing private businesses, including agriculture, mining, and construction, among other industries. The fund will also review commercial projects emerging from the government of Pakistan’s land bank monetization program, including the development of airports and motorways, ports, and the maritime sector.
This will help unlock the economic value of underutilized government land through transparent investment on a commercial basis. The fund will also explore commercial investment opportunities across Saudi Arabia, including the holy cities. Under the MoU, institutions from both sides will be invited to participate in the equity of the fund management company.
The ceremony was attended by members of the council from both countries. Fawad Mukhtar, Co-Chairman of the Council and Chairman of Fatima Group, attended from Pakistan.