A joint council of Saudi Arabian and Pakistani investors launched a private equity fund on Monday as part of the countries’ wider push to deepen two-way private sector trade and investment.

The Saudi-Pakistan Joint Business Council, formed by the governments of both countries, said the fund’s initial size is “multi-hundred million”, which is expected to expand based on opportunities across sectors.

In a statement, it said three-quarters of the fund will be invested in Pakistan, while the rest will go to Saudi Arabian projects.

Islamabad and Riyadh share robust bilateral cooperation, with frequent high-level diplomatic exchanges on both sides.

In August this year, the council’s chairman, Prince Mansour bin Mohammad Al Saud, called on Prime Minister Muhammad Shehbaz Sharif while visiting Pakistan, according to a statement from the Prime Minister’s Office (PMO).

During their meeting, PM Shehbaz discussed avenues to expand economic cooperation and investment between the two nations.

“The Saudi side conveyed interest in investment opportunities in agriculture, ports, highways and airport outsourcing [and the] real estate sector, as well as in the energy, power distribution, and information technology sectors,” the statement read.

On August 7, ​​​​​​​Pakistan and Saudi Arabia, alongside Turkiye, also signed a joint defence agreement pledging to strengthen collective security, deepen defence cooperation and promote peace and stability in the region and beyond.

Later that month, the two countries agreed to boost Pakistani agricultural and food exports to the Gulf state up to $3 billion.

Earlier in June, Pakistan invited Saudi investors to participate in the construction of the long-awaited Sukkur-Hyderabad Motorway (M6) and two other major highway projects, with the motorway expected to provide uninterrupted motorway connectivity from Karachi Port to Peshawar and onward to Gilgit.