The Prime Minister also discussed the role of Islamic Development Bank with the Saudi finance minister and suggested that its role should be made more proactive for the development of Islamic countries.
Shaukat Aziz emphasised the need to further promote contacts in the private sector and assured Ibrahim that Pakistan would provide all possible incentives and co-operation to the Saudi businessmen.
He said Pakistan's economy was growing at the rate of about seven-percent and offered great opportunities for foreign investment.
Shaukat Aziz said there is no restriction on equity and Pakistan offers free inflow and outflow of remittances.
Talking to reporters after addressing the Jeddah Economic Forum, the Prime Minister said on Saturday policies of deregulation and robust economic growth has made Pakistan an ideal destination for foreign investment.
He said the government was providing level-playing field to the investors and with the growth rate between seven and eight percent, Pakistan has become an attractive market.
"Pakistan's economy is deregulated and almost all sectors are open to foreign investment," he said.
He said due to prudent and liberal economic policies, the country's IT sector had become very competitive and growing and there had been rapid development in the energy sector.
Responding to a question, Prime Minister Aziz said that relations with India were improving and the two countries were engaged in a composite dialogue process to resolve all outstanding issues.
Pakistan was endeavouring to resolve all issues with India, including the issue of Jammu and Kashmir, through political dialogue, he added.
He also referred to recent agreement between the two South Asian countries on starting a bus service between Muzaffarabad and Srinagar.
However, the Prime Minister said, there were problems on the water issue and Pakistan has approached the World Bank in this regard.
Responding to a question, he said, no one knows about the whereabouts of Osama bin Laden.
On the security concerns for Pakistan, the Prime Minister said after the 9/11 event, many undesirable elements had come to Pakistan, but they were arrested by the law enforcement and security agencies.
He firmly stated that security situation in Pakistan was absolutely fine and the country offered best investment opportunities with un-parallel incentives to foreign investors in the region.