Startup Wrap – Saudi startup ecosystem leads regional funding activity

JEDDAH: Pakistan is seeking to expand its trade ties with Saudi Arabia, aiming for a larger share of the $5.5 billion bilateral trade market by diversifying exports beyond traditional commodities, a senior minister said.

Speaking to Arab News at the conclusion of Pakistan's first solo ‘Made in Pakistan’ exhibition and business forum in Jeddah, federal commerce minister Jam Kamal Khan noted that a significant portion of the total trade volume comprises petroleum and minerals exported from Saudi Arabia.

“Our annual export to Saudi Arabia is going to be close to $600 to $700 million, which again is not that big a figure. That is why I feel the reason for inaugurating these exhibitions over here is that we can tap those potential areas where Pakistani and Saudi Arabian companies can jointly work to benefit trade between the countries,” he said.

In October, Saudi Arabia exported goods worth SR614.2 million ($164 million) to Pakistan, accounting for 0.7 percent of its total exports. The Kingdom imported SR249.5 million in products from Pakistan, making up 0.3 percent of its total imports.

With strong consumer demand, a large expatriate workforce, and Vision 2030’s emphasis on economic diversification and foreign investment, Saudi Arabia presents significant export potential for Pakistani businesses.

Khan said Pakistan is also exploring opportunities in Africa, calling it a major market where the country has a competitive edge through its small and medium enterprises.

Reflecting on his visit to Saudi Arabia, Khan highlighted recent high-level exchanges between the two countries, including Pakistani Prime Minister Shehbaz Sharif’s official visit.

“Having a brotherly relationship with Saudi Arabia for a very long time, somehow this exhibition should have happened much earlier. But again, I guess this is the right time,” he said.

The exhibition was attended by senior Saudi officials from the Ministries of Investment and Commerce, alongside representatives from the Federation of Saudi Chambers. Khan described the interactions as highly engaging and expressed optimism about the event’s outcomes.

Expanding partnerships

Khan underscored the need to enhance Pakistani workforce participation in Saudi Arabia’s evolving economic landscape.

“We already have a very big human resource presence in Saudi Arabia, which is close to 3 million people, but the majority of that workforce is at a less-skilled level,” he said.

He pointed to the country’s strengths in the IT sector, emphasizing the potential for the Pakistani diaspora to upskill and contribute more effectively to the Kingdom’s economy.

“We are very reasonable in terms of global wages. Pakistani human resources are easily available, have the capacity, and at the same time are not very costly. So, this is one side that can really facilitate growth, especially with Vision 2030 and the 2034 FIFA World Cup coming here,” he added.

Pakistan is also looking to attract Saudi investment in key sectors such as oil and gas, renewable energy, and infrastructure.

“We are looking forward to Saudi Arabia exploring opportunities in logistics and port services as well. Pakistan’s strategic location makes it an ideal transit hub for the region, which could greatly benefit investors,” he said.

Khan revealed that Pakistan is finalizing its first transit port policy, which will facilitate regional trade. He emphasized that Saudi participation in these logistics operations would give the Kingdom a competitive advantage in global trade.

Overcoming challenges 

Khan acknowledged the challenges Pakistan faces in strengthening its trade relationship with Saudi Arabia. He noted that 65 percent of Pakistani exhibitors at the event had never exported to Saudi Arabia and lacked awareness of the market’s potential.

“This is their first time coming to Saudi Arabia. That was a very big surprise to me. This shows that we need to really open up awareness for the business community in Pakistan to explore Saudi Arabia,” he said.

Another key challenge, he said, is that trade between the two countries has traditionally been limited to rice, meat, and other staple food commodities.

“That is why we are planning a major participation in the upcoming IT exhibition [LEAP 2025] in Riyadh. More than 80 companies from Pakistan are set to take part, as IT is a sector where Pakistan has strong human resource capacity and growth potential,” he said.

He stressed that many Pakistani companies already operate successfully in global markets and, if given the opportunity, could expand into Saudi Arabia through collaborations with local businesses.

Improving investment climate

Khan highlighted the importance of improving ease of doing business to attract foreign investment. He pointed to Pakistan’s Special Investment Facilitation Council as a key mechanism for streamlining investment processes.

“There is a special desk in SIFC that oversees Saudi-related projects. It is a crucial component that is gradually eliminating bureaucratic hurdles and expediting business procedures,” he said.

Saudi Arabia has also designated a ministry to facilitate bilateral investment and business operations, he added.

Khan outlined the industries Pakistan is targeting for trade expansion in Saudi Arabia.

“When we export to the US and Europe, our key components are textiles, garments, and apparel, as well as bedding, linen, and other products. Another strength we have is in sports goods, followed by surgical instruments,” he said.

He also highlighted the country’s footwear and leather industries as strong export sectors.

“These four components are key value-added products for our global trade. When it comes to agriculture, we are already present in rice, mangoes, and fruits, but our primary focus remains on these four industries,” he said.

Although Saudi Arabia’s market for these products is relatively small, Khan sees it as a starting point, with opportunities for both large investments and SMEs.

The exhibition, he added, serves as a matchmaking platform, helping Pakistani businesses understand market demand and attract potential investors. Future events in Riyadh, Dammam, and Jeddah will be strategically targeted based on insights gained from this participation.

Incentives for Saudi investors

Khan emphasized Pakistan’s potential as an investment destination, citing its population of 250 million as a major consumer market.

“Saudi Arabia’s close brotherly relationship with Pakistan gives it a unique advantage in trade, investment, and cooperation,” he said.

“We have a very different relationship with Saudi Arabia — it goes beyond trade, exports, and finance. It is something that is rare with any other country. But we need to capitalize on it. We must strengthen it through shared economic opportunities, livelihoods, and trust,” he added.

Khan noted that he has been in discussions with Saudi delegates for the past eight months, identifying key areas for mutual investment.

“The first component has been business-to-business interaction. Business must be driven by the private sector, not governments. That’s why we signed agreements worth $2.8 billion, entirely through the private sector,” he said.

He added that six of the deals have been finalized, while others amounting to around $600 million are in the final stages. More agreements are also nearing completion.

With growing trade and investment initiatives, Pakistan is positioning itself as a stronger economic partner for Saudi Arabia, leveraging its workforce, industrial capabilities, and strategic location to deepen commercial ties.