ISLAMABAD: Saudi Arabia’s Investment Minister Khalid bin Abdulaziz Al-Falih said on Thursday the Kingdom wanted to give a large share of $200 billion in annual construction and material procurement contracts to Pakistan.
The Saudi minister made the announcement while addressing the Pakistan-Saudi Business Forum held in Islamabad on Thursday, saying they were committed to invest in Pakistan while describing his meeting earlier in the day with Chief of the Army Staff General Asim Munir as “very meaningful”.
Pakistan is hoping to finalize at least $2 billion in investment proposals during the Saudi dignitary’s three-day visit.
The Saudi minister declared that 27 memorandums of understanding (MoUs) will be signed during their visit to Pakistan.
Saudi Arabia is set to become the world’s largest construction market as the Kingdom pours vast amounts of money into projects aimed at overhauling and diversifying the economy. The country’s total construction output value is forecast to reach $181.5 billion by the end of 2028, up almost 30 percent from 2023 levels, according to a 2024 report by global property consultancy Knight Frank.
“Saudi Arabia is the largest construction site in the world and we will in the next few years be awarding construction and material procurement contracts reaching about $1.8 trillion,” Al Falih said as he addressed the Pak-Saudi Business Forum 2024, according to Arab News.
Saudi Minister, Army Chief reaffirm growing bilateral cooperation in various sectors
“Last year, the value of construction and EPC [engineering, procurement, and construction] procurement, including materials, was $150 billion, this year that’s $180 billion and it will be about $200 billion annually of contract and material procurement awards year after year.
“Fortunately for our partners here in Pakistan, a lot of the input into those contracts is going to be imported and we want it to be imported from Pakistan. All things being equal, in fact, we will compromise a little bit to make it come from Pakistan.”
Al-Falih’s visit to Islamabad comes as Pakistan seeks closer cooperation in trade, infrastructure, energy and other sectors with friendly countries and regional allies, with the aim to attract foreign investment and shore up its $350 billion economy, beset by a prolonged economic crisis that has drained foreign exchange reserves and weakened the national currency.
Pakistan and Saudi Arabia in particular have been working closely in recent months to increase bilateral trade and investment, with Crown Prince Mohamed bin Salman reaffirming the Kingdom’s commitment this year to expedite a $5 billion investment package for the South Asian country.