Saudi Arabia’s Investment Minister, Khalid bin Abdulaziz Al-Falih, announced on Thursday that the Kingdom plans to allocate a significant share of $200 billion in annual construction and material procurement contracts to Pakistan. Speaking at a joint business forum in Islamabad, he highlighted that the visit aims to finalize at least $2 billion in investment proposals during the Saudi dignitary’s three-day stay.
Al-Falih noted that Saudi Arabia is poised to become the world’s largest construction market, investing heavily in projects to diversify its economy. According to a 2024 report by global property consultancy Knight Frank, the Kingdom’s total construction output is projected to reach $181.5 billion by the end of 2028, marking a nearly 30 percent increase from 2023.
“Saudi Arabia is the largest construction site in the world, and we will be awarding contracts worth approximately $1.8 trillion in the coming years,” Al-Falih stated at the Pak-Saudi Business Forum 2024. He shared that last year’s construction and engineering procurement (EPC) value was $150 billion, rising to $180 billion this year, with expectations of reaching $200 billion annually.
Al-Falih expressed a strong desire for Pakistan to be a key supplier in these contracts, stating, “We want it to be imported from Pakistan. We will even compromise a little to ensure that.”
His visit comes as Pakistan seeks to enhance cooperation in trade, infrastructure, and energy with friendly nations to attract foreign investment and stabilize its $350 billion economy, which has been affected by a prolonged economic crisis. Pakistan and Saudi Arabia have been strengthening bilateral trade and investment ties, with Crown Prince Mohamed bin Salman recently reaffirming a $5 billion investment package for Pakistan.
The Pakistani president’s office announced that 25 agreements would be signed during Al-Falih’s visit, which are expected to herald a new era of economic cooperation. These agreements will focus on sectors including construction, infrastructure, mining, agriculture, and information technology.
The Pakistani Prime Minister’s Office indicated that Al-Falih would have a busy schedule, meeting with top government officials and business representatives while signing important memorandums of understanding. The delegation accompanying him includes over 130 members from various sectors, including energy, mining, agriculture, and tourism.
This visit follows the International Monetary Fund’s approval of a $7 billion bailout deal for Pakistan, emphasizing the need for sound policies and reforms to strengthen economic stability and support from development partners.
