Wa’ed Ventures, a $500 million venture capital fund under Saudi Aramco, is committing $100 million to artificial intelligence (AI) startups.
The investment has been framed as part of Saudi Arabia’s journey to becoming a global hub for AI and stimulating economic growth and diversification through technological innovation.
The funds are expected to be deployed over the next three years, the company said.
The fund has established an advisory board, which will help identify investment opportunities and attract global talent to the Kingdom. These board members have backgrounds in policymaking, research, academia and entrepreneurship, with affiliations to leading institutions like Meta, Amazon, MIT and Oxford.
“Our strategic decision to allocate funds to AI investments is rooted in a deep understanding of the Kingdom’s growing ecosystem,” said Anas Al-Gahtani, Acting CEO of Wa’ed Ventures. “By fostering innovation and supporting AI startups, we aim to accelerate the development of cutting-edge technologies that will drive economic growth, improve quality of life, and position Saudi Arabia as a global leader in artificial intelligence.”
The Saudi AI market is projected to significantly impact the economy, with PwC estimating AI could contribute $135 billion to the Kingdom’s economy by 2030, making up over 12% of its GDP. Wa’ed Ventures has already taken stakes in companies like Korea’s AI chipmaker Rebellions and California’s aiXplain, which focus on AI infrastructure.
“This investment will not only incentivise local entrepreneurs but also support the localization of global talent, ultimately unlocking the immense potential of AI,” Al-Gahtani added.
Established in 2013, Wa’ed Ventures manages over 70 startups, offering comprehensive support from funding to resource access. The fund’s recent investments underscore its commitment to boosting Saudi Arabia’s AI ecosystem and capturing a significant share of the anticipated $13 trillion global AI market growth by 2030.