Saudi and Pakistani investors have signed a memorandum of understanding (MoU) to establish a joint private equity fund, with an initial size described as several hundred million.

The fund will be financed equally by private investors from both countries. It will allocate 75 percent of its investments to Pakistan and the remaining 25 percent to Saudi Arabia.

The fund will target private businesses in sectors including agriculture, mining and construction, along with other industries.

In Pakistan, the investors will also explore commercial projects linked to the government’s programme to monetise public land. These may include opportunities involving airports, motorways, ports and maritime development.

The fund will also consider commercial investment opportunities in Saudi Arabia, including projects in the holy cities.

The MoU also provides for institutions from both countries to take equity stakes in the fund management company.

The fund will move towards structuring and its first investments after obtaining the required regulatory approvals from the two governments.

The announcement did not specify the currency or exact amount of the fund’s initial size.