Saudi Aramco's Wa'ed Ventures earmarks $100m for AI investments
Monday, 28 October 2024
RIYADH, Oct 27 (Arab News): Saudi Arabia's $500 million venture capital fund, Wa'ed Ventures, a wholly-owned subsidiary of Aramco, has earmarked $100 million to invest in artificial intelligence startups.
The initiative aligns with the Kingdom's ambition to position itself as a global AI hub and drive economic growth through technology-driven innovation.
Wa'ed Ventures has also established an advisory board comprised of prominent leaders in the AI sector to facilitate deal sourcing and support the localization of global talent.
The board members bring expertise from diverse fields, including policymaking, research and academia, as well as entrepreneurship, with backgrounds from major institutions like Meta, Amazon, The Massachusetts Institute of Technology, and Oxford.
The advisory board is expected to guide Wa'ed in identifying high-potential AI investments and accelerate the integration of advanced technologies within the Kingdom.
"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. This investment will not only incentivize local entrepreneurs but also support the localization of global talent, ultimately unlocking the immense potential of AI," Al-Gahtani added.
The investment strategy comes as Saudi Arabia's AI market is projected to see a substantial economic impact over the next decade.
According to a report by PwC, AI could contribute an estimated $135 billion to the Kingdom's economy by 2030, accounting for over 12 percent of the country's projected gross domestic product. This would position the technology as one of the nation's most significant economic drivers.
Wa'ed Ventures has already begun executing its AI investment strategy with recent stakes in innovative companies such as Korea's AI chipmaker Rebellions and the California-based aiXplain, which specializes in essential infrastructure for accelerated development.