Saudi Aramco Allocates $4 Bln Global Venture Capital Arm
Saudi Aramco Allocates $4 Bln Global Venture Capital Arm
Saudi Aramco announced today allocation of additional $4 billion to its global venture capital arm, ‘Aramco Ventures’, reported Saudi Press Agency.
This move will double the capital allocated to Aramco Ventures. Thus, it will raise the total investment allocations from 3 billion US dollars to 7 billion US dollars.
This will bring the total venture capital allocation of Saudi Aramco to 7.5 billion US dollars, which includes the ‘Wa’ed Ventures’ capital fund valued at 500 million US dollars, focusing on the startups in the Kingdom.
Importance of Aramco’s Capital Program
The allocation decision reflects the growing importance of Saudi Aramco’s venture capital program in developing new and innovative technologies, creating diversification opportunities for the company, paving the way for collaboration with emerging innovation companies.
The program aims to help strengthen the company’s long-term strategy. This strategy includes focusing on new energy sources, chemicals and material transformation, diverse industrial operations, and digital technologies.
Ahmad Al-Khowaiter, Chief Technology Officer for Innovation at Saudi Aramco, stated that innovation is a key element in addressing some of the major challenges the world faces today, including the energy transition.
Through Aramco Ventures, it aims to support ambitious entrepreneurs and help bring their ideas to reality.
He reported that the injection of an additional 4 billion US dollars of funding over the next four years will provide the necessary financial support to elevate solutions that make a difference to a higher level.
Therefore, this will provide significant momentum for companies at various stages of development around the world. Moreover, it will contribute to achieving Saudi Aramco’s long-term goals.
Three Aramco-Ventures-Managed Funds
Al-Khowaiter noted that prior to the expansion, Aramco Ventures managed three funds. The first is a Digital/Industrial fund currently valued at 500 million US dollars. It invests in technologies of strategic importance to Saudi Aramco.
The second is the Prosperity7 fund, with a capital of 1 billion US dollars. It invests in advanced technology projects outside the energy sector.
Thirdly, it manages the Sustainability fund, valued at 1.5 billion US dollars. Sustainability fund invests in startups that have the potential to support Saudi Aramco’s ambition to achieve net-zero greenhouse gas emissions in scopes 1 and 2 across its fully owned and operated assets by 2050.
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