Saudi Aramco’s venture capital arm, Wa’ed Ventures, has committed $100 million from its $500 million fund to invest in artificial intelligence (AI) startups. This initiative reflects Saudi Arabia’s ambition to position itself as a leading AI tech hub in the Middle East and to drive economic growth through technological innovation.
Anas Algahtani, acting CEO of Wa’ed Ventures, highlighted the strategic nature of this investment, emphasizing the Kingdom’s evolving ecosystem and the importance of fostering local innovation. “By supporting AI startups, we aim to develop cutting-edge technologies that enhance economic growth and improve quality of life while positioning Saudi Arabia as a global leader in artificial intelligence,” he stated. This funding is intended to incentivize local entrepreneurs and facilitate the localization of global talent, unlocking the vast potential of AI in the region.
Wa’ed Ventures, established over a decade ago, focuses on investing in startups and early-stage companies that can integrate innovative technologies into Aramco’s operations. The fund typically invests up to $20 million per deal and has already made notable investments in AI-focused companies. Recently, Wa’ed led a $15 million extension to the series B funding round of South Korean AI chipmaker Rebellions and participated in a $6.5 million pre-series A round for aiXplain, a U.S.-based provider of AI development infrastructure.
To bolster its investment strategy, Wa’ed Ventures has assembled an advisory board comprising leaders in AI from renowned institutions like Meta, Amazon, the Massachusetts Institute of Technology, and the University of Oxford. This board will aid in identifying promising investment opportunities and help integrate advanced technologies within the Kingdom. Their diverse expertise in academia, policymaking, research, and entrepreneurship will be instrumental in guiding Wa’ed’s investment decisions.
The push into AI comes as Saudi Arabia anticipates significant economic benefits from the sector. According to a report by PwC, AI could contribute approximately $135 billion to the Kingdom’s economy by 2030, accounting for over 12% of the projected gross domestic product. This positions AI as a critical driver of the nation’s economic diversification efforts under the Vision 2030 initiative, which aims to reduce reliance on oil revenue.
Wa’ed Ventures’ commitment to AI reflects Saudi Arabia’s broader strategy to enhance its competitive standing in the global AI landscape. The Kingdom is striving to become one of the top 15 countries for artificial intelligence by the end of this decade, competing primarily with the UAE for investments and technological advancements. Both countries are heavily investing in infrastructure, such as data centers, to support AI technology development.
The Saudi venture capital market has seen substantial growth, with Wa’ed Ventures leading efforts to attract startups across various sectors. The fund recently announced its intention to generate a strong pipeline of global early-stage AI startups, which will further enhance the Kingdom’s position as a desirable location for tech innovation. As part of this strategy, Saudi Arabia previously offered $888 million in funding to startups in digital payments, gaming, and AI, showcasing its commitment to fostering a vibrant entrepreneurial ecosystem.
From January to September 2024, the Middle East and North Africa’s venture capital market raised $1.3 billion, with Saudi Arabia accounting for nearly 40% of total funding, according to a report by Dubai-based venture capital analysis platform Magnitt. This trend highlights the Kingdom’s increasing role as a regional leader in venture capital, particularly in technology sectors.
In summary, Saudi Aramco’s Wa’ed Ventures is poised to make a significant impact on the AI landscape by investing $100 million in startups, establishing a strong advisory board, and aligning its efforts with the Kingdom’s Vision 2030 goals. This initiative is expected to not only drive economic growth but also enhance the quality of life for Saudi citizens while positioning the Kingdom as a key player in the global AI arena.
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tags: Artificial Intelligence, Ai, Dhaka Ai, Ai In Bangladesh, Ai In Dhaka, Future of AI, Artificial Intelligence in Bangladesh, Aramco
