Pakistan and Saudi Arabia Agree to Establish Joint Equity Fund

On 9 November 2026, the Saudi-Pakistan Joint Business Council signed a memorandum of understanding to establish a joint private equity fund. It is intended to deepen private-sector trade and investment between the two countries.

Investment plan and sectors

The fund is expected to begin with several hundred million US dollars, with Saudi and Pakistani private investors contributing equally. Its capital may expand as investment opportunities emerge. Under the agreed allocation, 75% will go to projects in Pakistan and 25% to projects in Saudi Arabia. The establishment and investments remain subject to regulatory approvals from both governments.

In Pakistan, the fund plans to target high-growth private businesses in agriculture, mining, construction, infrastructure, logistics, agribusiness and renewable energy. It will also explore projects linked to the government’s plan to monetise its land bank, including airports, motorways, ports and maritime development. In Saudi Arabia, it will consider commercial projects across the Kingdom, including in the holy cities.

Important Facts for Exams

• Capital calls: Private equity investors commit capital upfront, but the general partner draws it over time through capital calls as investment needs arise.
• Liquidity limits: Limited partners generally cannot demand asset sales to obtain cash; distributions usually follow only when investments are converted to cash.
• Pakistan fund regulation: In Pakistan, the Securities and Exchange Commission administers the Private Funds Regulations, 2015, providing a dedicated regulatory framework for private investment funds.
• Saudi fund regulation: Saudi Arabia's Capital Market Authority regulates investment funds under its Investment Funds Regulations, which distinguish private funds from publicly offered funds.