2 days ago
- Business
- Business Recorder
Riyadh displeased with ‘issues' encountered by Al-Jomaih in KE
ISLAMABAD: Saudi Arabia has reportedly conveyed its serious annoyance to the government over the issues being faced by M/s Al-Jomaih in K-Electric, sources told Business Recorder.
Sharing the details, Special Investment Facilitation Council (SIFC) has informed the concerned authorities that the ongoing delays have deeply disappointed Saudi officials. Prime Minister Sharif had assured resolution within a month during a meeting in October 2024—an assurance still unfulfilled.
In light of these concerns, Pakistan's Ambassador in Riyadh met with Saudi Assistant Minister of Investment Ibrahim Al-Mubarak on June 24, 2025. The meeting followed a virtual dialogue held on June 16, 2025, aimed at addressing Al-Jomaih's grievances.
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Islamabad has also been informed that Al-Mubarak stressed that further delays are damaging Pakistan's investment credibility and could impact future Saudi commitments. He warned that unresolved issues could increase Pakistan's investment risk profile, elevate insurance costs, and reduce projected returns. He added that Al-Jomaih holds significant influence in the Saudi investment community, and any negative experience could deter others from entering the Pakistani market.
He also mentioned that 34 B2B Memoranda of Understanding (MoUs) were signed in October 2024 between Saudi and Pakistani companies—several of which are now under reconsideration due to the ongoing dispute.
In response, Pakistan's Ambassador reassured the Saudi side that internal consultations are underway and a follow-up meeting is expected by mid-July. He emphasized that Deputy Prime Minister Dar is personally leading the matter, citing the recent resolution of Makhdoom Logistics' case as a sign of progress, the sources added.
However, Saudi officials made it clear that a concrete resolution must precede Minister Musadik Malik's planned visit to the Kingdom. While reaffirming Saudi Arabia's interest in Pakistani sectors such as infrastructure, agriculture, energy, and mining, Al-Mubarak warned that persistent delays could derail future investments.
Copyright Business Recorder, 2025
