Pakistan to receive 75% of new Saudi-backed private equity fund

Pakistan is due to receive 75% of the capital in a new Saudi-Pakistani private equity fund, under an agreement signed on November 9, Profit by Pakistan Today reported. The fund is expected to start with several hundred million dollars, with investors from the two countries contributing equally.

The Saudi-Pakistan Joint Business Council said the fund will invest in private businesses, including in agriculture, mining and construction, and could also consider projects linked to the commercialisation of public assets such as airports, motorways and ports. The remaining 25% is earmarked for opportunities in Saudi Arabia, while the fund and its investments still require regulatory approval in both countries.

Financial institutions from Pakistan and Saudi Arabia may also take equity in the fund management company. The plan builds on recent efforts to expand business investment between the countries beyond government-led cooperation.