Pakistan-Saudi IT MoU: Here’s what we’ll get

Pakistan and Saudi Arabia have signed a memorandum of understanding (MoU) to work together in the field of information technology (IT).

The agreement was signed by Pakistan’s acting IT minister Umar Saif and his Saudi counterpart Abdullah A Al-Sawahah in Riyadh on Sunday.

It aims to facilitate Pakistani companies to work in Saudi Arabia, provide IT-trained manpower to Saudi companies, promote joint ventures with Saudi companies, and establish a startup exchange program with leading Saudi technology incubators.

Pakistan has signed an MoU with the Ministry of Communications and IT of Saudi Arabia. This will make it easier for Pakistani companies to work in Saudi Arabia, provide IT-trained manpower to Saudi companies, promote joint ventures with Saudi companies and establish a startup exchange program with top… pic.twitter.com/LrWzNbSH6A

-Umar Saif (@umarsaif) October 1, 2023

The MoU also includes a bilateral commitment to the digital economy. Both sides agreed to promote the private sector outside the government level.

Strategic cooperation

The MoU also outlines a number of strategic areas of cooperation, including:

• Establishment of Chip Manufacturing Industry in Pakistan: This would be a big boost to Pakistan’s IT sector and help reduce the country’s dependence on imported chips.
• Working on electric vehicles, lithium-ion batteries, agricultural technology and mining technologies: These are all areas in which Pakistan and Saudi Arabia have complementary strengths, and cooperation in these areas could lead to the development of new products and services that would benefit both countries.

Special Desk for Pakistan IT Companies

Pakistan’s Acting IT Minister Umar Saif has also announced that he has met Saudi Investment Minister HE Khalid al-Falih, who has instructed the Investment Ministry to set up a special office for IT companies to Pakistani ITs register in Saudi Arabia and grant licenses (CR) to operate in the kingdom.

This office will also work with Pakistan’s IT industry to provide business opportunities in the public and private sector of Saudi Arabia.

Investment fund for Pakistani startups

Saif also said that he has arranged meetings with the Saudi Public Investment Fund (PIF) to explore the possibility of participating in the venture capital fund of funds for Pakistani startups.

Incredibly productive meeting with the Minister of Investment of Saudi Arabia (MISA). I cannot thank Minister HE Khalid al-Falih enough for his warmth and support. He has directed MISA to set up a special office for Pakistani IT companies to register in KSA and grant… pic.twitter.com/AzuTxzmnvq

-Umar Saif (@umarsaif) October 1, 2023

“Incredibly productive meeting with the Minister of Investment of Saudi Arabia (MISA). I ​​cannot thank Minister HE Khalid al-Falih enough for his warmth and support. He has ordered MISA to establish a special office for Pakistani IT companies register in KSA and grant licenses (CR) to operate in KSA,” he wrote in a post on X.

The minister also wrote: “Usually the process would take months and more than 100,000 rials in consulting fees. This was the number one demand of our IT companies. This office will also work with our IT industry to offer opportunists of businesses in the public and private sectors. KSA sector. The Minister also organized meetings with the Saudi Investment Fund (PIF) to explore the possibility of participating in our venture capital fund of funds for Pakistani startups.”

This would be a significant boost to Pakistan’s startup ecosystem and would help attract more investments towards Pakistani startups.