ISLAMABAD: A high-level Saudi delegation arrived in Pakistan on Tuesday to sign multiple business and investment agreements with local companies, confirmed the Foreign Office and the Special Investment Facilitation Council (SIFC) in Islamabad, following last month’s landmark defense agreement signed by the two countries.

The delegation is expected to sign various agreements and memorandums of understanding (MoUs) at both the government-to-government (G2G) and business-to-business (B2B) levels.

A similar visit by representatives of Saudi companies from the agricultural, mining, tourism, industry, and manpower sectors last October resulted in 34 MoUs worth $2.8 billion between the two sides.

The Foreign Office of Pakistan said in a statement that the Saudi delegation was led by Prince Mansour bin Mohammad Al Saud, the chairman of the Saudi-Pakistan Joint Business Council.

“During their stay, His Highness and the accompanying delegation will hold meetings with the Pakistani leadership and engage with senior government officials, chambers of commerce, and leading business groups to explore avenues for enhanced bilateral trade and investment cooperation,” it said.

“The visit underscores the deep-rooted and brotherly ties between Pakistan and the Kingdom of Saudi Arabia and reflects their shared commitment to expanding economic and investment partnerships under the framework of the Saudi-Pakistan Joint Business Council,” the statement continued.

It added that discussions during the visit were expected to focus on both trade and investment facilitation within the context of Pakistan’s economic growth agenda.

The SIFC, a hybrid civil-military body set up two years ago to fast-track decisions in key economic sectors, also emphasized the significance of the visit, saying the two sides wanted to collaborate in areas of mutual interest.

“The visit reflects the shared commitment of both nations to enhance economic collaboration under Saudi Vision 2030 and Pakistan’s investment-led growth strategy,” it said in a statement.

The delegation will also visit Pakistan’s major cities — Karachi and Lahore — for B2B engagements and discussions on joint ventures in key sectors, it added.

Experts believe the Saudi delegation’s visit is crucial for Pakistan’s economy.

“Pakistan needs large-scale foreign direct investment to stabilize its external account and reignite growth,” said Adnan Sami Sheikh, assistant vice president of research at the Pakistan-Kuwait Investment Company, in an interview with Arab News. “The Saudi delegation’s visit comes at a crucial time.”

He said the visit could lead to a revival of the $10 billion Greenfield coastal refinery project that has remained stuck for a few years now.

The refinery in Pakistan’s port city of Gwadar was first announced in January 2019, but the project has not materialized. The refinery was meant to have a capacity of 250,000–300,000 barrels per day of oil refining and was expected to include a $1 billion petrochemical complex.

Beyond energy, Saudi Arabia has also expressed interest in Reko Diq, and Pakistan’s broader mineral potential — including rare earth elements now attracting US attention — could open a new frontier of strategic investments if Islamabad can ensure policy continuity and investor confidence, Sheikh added.

There’s also growing scope for Saudi capital to flow into Pakistan’s emerging AI and data center infrastructure, given the country’s young tech talent and surplus energy.

Shankar Talreja, head of research at Karachi-based brokerage Topline Securities Ltd., said Saudi Arabia was likely to invest in the petrochemical sector of Pakistan based on its expertise and financial resources. Furthermore, he said, developments on the front of mining can also be expected.

Asked about the refinery project, Talreja hoped it could also be revived.

“Yes, most likely, as Pakistan imports 80 percent of its energy requirement, and refining capacity is a major requirement of the country.”

Last December, the government said in a statement that seven out of 34 MoUs signed with Saudi Arabia in October 2024 had been actualized into agreements worth $560 million.

However, Talreja issued a note of caution regarding execution risk.

“Pakistan has been signing MoUs with several countries before, but many of the deals have not yet materialized,” he said. “This is due to some concessions required by these countries and also because we are in an International Monetary Fund program. That execution risk is expected to remain.”

Pakistan and Saudi Arabia have long enjoyed close ties, but in recent years they have sought to broaden and deepen their cooperation further.

The Saudi delegation’s visit to Islamabad comes just weeks after the two countries signed a bilateral defense pact that treats aggression against one country as an attack on both — a move aimed at strengthening joint deterrence and cementing decades of military and security collaboration.