Saudi Aramco's venture capital arm, Wa'ed Ventures, has allocated $100m to invest in AI startups, aligning with Saudi Arabia's ambition to become a leading player in the global AI landscape and rank among the top 15 nations for AI.
The strategic move is set to expedite the country's efforts to compete on the AI front as part of its broader economic diversification plans.
The investment, to be distributed up to 2027, is aimed at nurturing local entrepreneurship and attracting global talent to the region.
Wa’ed acting CEO Anas Algahtani stated: “This investment will not only incentivise local entrepreneurs but also support the localisation of global talent”.
Saudi Aramco's $500m venture capital division has intensified its focus on AI.
The fund recently made a $15m investment in South Korean chipmaker Rebellions and has participated in funding rounds for the AI platform aiXplain and the Peter Thiel-backed company Tenderd.
Saudi Arabia's AI strategy is twofold: to leverage data and AI to propel its economic diversification agenda, known as Vision 2030, and subsequently to compete on the global stage post-2030.
The kingdom's efforts are part of a regional competition with the United Arab Emirates, with both nations investing heavily in data centres to back AI technologies and vie for the title of regional tech superpower.
In parallel, Saudi Aramco has raised $3bn (SR11.25bn) through Islamic bonds to fulfil dividend obligations to the Saudi government.
This financial move comes as the government abandons its informal target of maintaining oil prices at $100 a barrel, planning instead to boost the kingdom's oil output.
The issuance of Islamic bonds is part of Aramco's debt-raising strategy, as the company faces a dividend commitment of $124.3bn for 2024, a significant increase from the $97.8bn paid out in 2023, despite oil production running at three-quarters of its capacity.
