ISLAMABAD, November 15: Saudi Arabia’s Investment Minister, Khalid Al-Falih, announced on Thursday that Pakistan will be a key partner in the Kingdom’s $200 billion annual construction and material procurement contracts.
Speaking at the Pak-Saudi Business Forum 2024 in Islamabad, Al-Falih expressed confidence in finalizing at least $2 billion in business agreements during his three-day visit. “Saudi Arabia is the largest construction site in the world, with projected annual contracts reaching $1.8 trillion over the next few years,” he said.
Growing Opportunities in Construction: Al-Falih revealed that Saudi Arabia’s construction output, currently valued at $180 billion for 2024, is expected to grow by nearly 30% by 2028, reaching $181.5 billion, according to a recent Knight Frank report. “A substantial portion of these contracts will require imported inputs, and Pakistan is poised to benefit significantly,” he added.
The Kingdom’s focus on infrastructure is part of its Vision 2030 strategy to diversify its economy. Sectors such as construction, mining, energy, and tourism are receiving significant investments, making Saudi Arabia the world’s fastest-growing construction market.
Strengthening Bilateral Ties: The announcement comes as Pakistan seeks to enhance trade and investment partnerships amid its ongoing economic challenges. Earlier in the year, Saudi Crown Prince Mohamed bin Salman reaffirmed a $5 billion investment package for Pakistan, bolstering economic ties.
During Al-Falih’s visit, the two nations are expected to sign 25 agreements covering construction, infrastructure, mining, agriculture, and IT. “This visit will mark a new chapter in Pak-Saudi economic cooperation,” stated the Pakistani President’s Office.
Delegation Meetings: Accompanied by a 130-member delegation from various industries, including energy, tourism, and agriculture, Al-Falih is scheduled to meet senior Pakistani officials and private-sector leaders. Pakistan’s Privatization and Investment Minister, Abdul Aleem Khan, emphasized that private companies are eager to seize these opportunities.
Broader Economic Context: Al-Falih’s visit follows the International Monetary Fund’s $7 billion bailout for Pakistan, contingent on policy reforms and economic stability measures. Saudi Arabia’s growing investments are seen as crucial for Pakistan’s recovery and long-term growth.
This collaboration underscores a deepening relationship between the two nations, with Saudi Arabia offering significant opportunities for Pakistani industries to contribute to one of the world’s most dynamic economies.
