Wa’ed Ventures Drives Saudi Arabia’s AI Ambitions with $100mn Investments
In a bold move to support Saudi Arabia’s ambitions towards becoming a global hub for artificial intelligence (AI), Wa’ed Ventures, a $500mn venture capital fund totally owned by Aramco, has announced the allocation of $100mn for investment in AI startups.
The initiative reflects Wa’ed’s commitment to creating pathways to innovation and technological advancement, as the Kingdom aspires to establish itself as a regional and global hub for AI and diversify its economy under its transformative Vision 2030.
Supporting AI Startups
In addition to earmarking $100mn to early-stage AI investments, Wa’ed Ventures has appointed an advisory board comprising prominent leaders in the field of AI. The board members bring expertise from various fields to the AI industry, including policymaking, research, academia, and entrepreneurship. They have gained their experience through working with globally renowned institutions, such as Meta, Amazon, MIT and Oxford.
This move aims to facilitate strategic deal sourcing and accelerate the localization of global AI startups. In a press release, the Acting Chief Executive Officer of Wa’ed Ventures, Anas Algahtani, said: “Our strategic decision to allocate funds to AI investments is rooted in a deep understanding of the Kingdom’s growing ecosystem.”
He highlighted the significance of the move. “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,” he noted.
AI Boom
The new investment initiative will further boost Saudi Arabia’s AI market, which is heading for an economic boom over the next few years, as the country prioritizes technology and innovation as part of its economic diversification plans.
According to a report by PwC, the Kingdom could gain up to $135bn in value by 2030, surpassing other countries in the region. This contribution will account for more than 12% of Saudi Arabia’s total GDP by 2030, making AI one of the main economic drivers.
Wa’ed AI Drive
The new AI strategy is another step by Wa’ed Ventures to keep to its commitment to advancing Saudi Arabia’s AI ecosystem by fostering high-potential AI applications and infrastructure players.
In July, Wa’ed Ventures invested $15mn in South Korean chipmaker Rebellions Inc. to build high performance and energy-efficient AI data centers in Saudi Arabia. Moreover, Aramco’s venture capital fund Wa’ed Ventures announced earlier this year an investment in the California-based startup AiXplain, which specializes in providing essential infrastructure for accelerated AI development.
Wa’ed Ventures
Established in 2013, Wa’ed Ventures aims to support local tech-based startups and localize pioneering global innovation, by providing a combination of venture capital funding and post-investment support services.
Wa’ed Ventures has successfully built a portfolio of tech-based start-ups across a wide range of fields, including the Internet of Things (IoT), e-commerce, fintech (financial technology), drones, artificial intelligence, cloud and super-computing, energy and industrial applications, agritech (agricultural technology), edtech (educational technology), and healthtech (technology-enabled healthcare).
AI in Saudi Arabia
Saudi Arabia has achieved remarkable milestones towards establishing itself as a regional and global leader in the field of AI, as part of its ambitious Vision 2030. The Kingdom aspires to be among the top 15 nations in the field of AI by 2030. Hence, it has forged the National Strategy for Data and AI (NSDAI) and injected billions of dollars to invest in the fast-emerging sector.
Saudi Arabia’s success in AI has been evident in numerous impressive achievements, including securing top ranks in several global AI indicators, improving the ranking of 5 Saudi cities in the IMD Smart City Index 2024, and developing and deploying humanoid robots.
Furthermore, the Kingdom is investing heavily in advanced and emerging technologies, innovation, and cloud computing in Saudi Arabia and abroad. It has also hosted several AI summits and events to showcase the latest AI innovations and applications, forge new partnerships and attract investments. These include the Global AI Summit (GAIN) and the LEAP Exhibition.
These events align with the objectives of Vision 2030 which aims to build a knowledge and technology-based economy and transform the Kingdom into a global technology hub for AI-based cutting-edge technologies.
