Aramco’s Venture fund to accelerate Saudi Arabia’s AI ambitions with strategic investments and global advisory board

Saudi Aramco’s venture capital arm, Wa’ed Ventures, has committed $100 million to support artificial intelligence (AI) startups, marking a significant step in Saudi Arabia’s ambition to position itself as a leading global hub for AI-driven innovation. This announcement aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and place technology at the forefront of economic growth.

As a wholly-owned subsidiary of Aramco, Wa’ed Ventures manages a $500 million fund dedicated to fostering technological advancements across industries. This new AI-focused investment will play a central role in Saudi Arabia’s economic transformation, supporting innovative companies and bringing cutting-edge technologies to the Kingdom’s market.

“Our strategic decision to allocate funds to AI investments is rooted in a deep understanding of the Kingdom’s growing ecosystem,” stated 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 incentivise local entrepreneurs but also support the localisation of global talent, ultimately unlocking the immense potential of AI.”

To advance its goals, Wa’ed Ventures has assembled an advisory board featuring distinguished figures from the AI sector, spanning areas such as policymaking, research, academia, and entrepreneurship. Experts from global giants like Meta and Amazon, as well as renowned institutions like MIT and Oxford, will help identify promising AI investments and develop strategies to localise talent and knowledge. This board is expected to provide a wealth of insight and guidance, ensuring that the venture fund’s investments align with global trends and best practices.

The AI market in Saudi Arabia is projected to play a transformative role in the economy. A report by PwC forecasts that AI could contribute up to $135 billion to the Kingdom’s economy by 2030, representing over 12 per cent of the nation’s projected GDP. This would position AI as one of Saudi Arabia’s primary economic drivers, shaping the future landscape of sectors such as finance, healthcare, logistics, and beyond.

To kickstart its new investment initiative, Wa’ed Ventures has already made significant investments in AI companies with international scope and expertise. Recent investments include Korea’s AI chipmaker Rebellions and the California-based AIXplain, which focuses on essential infrastructure to accelerate AI development. By partnering with innovative firms globally, Wa’ed aims to bring pioneering technology and infrastructure to Saudi Arabia, fostering a local AI ecosystem that leverages international best practices and groundbreaking advancements.

Beyond financial backing, Wa’ed Ventures has an established history of supporting startups across stages, from inception to scaling up. Founded in 2013, the fund now manages a portfolio of over 70 startups. It provides not only funding but also access to partner resources, offering entrepreneurs the tools they need to navigate growth and expand operations. Through these resources, Wa’ed aims to create an environment where startups can thrive, accessing mentorship, research, and the technological infrastructure required to accelerate development.

The impact of AI on global economies is anticipated to be monumental. According to a study by McKinsey & Co., AI could contribute more than $13 trillion to the global economy by 2030. Saudi Arabia, with its investments and strategic focus on technology, is poised to capture a considerable share of this growth, using AI as a critical lever to diversify away from its traditional reliance on oil.

Saudi Arabia’s increased investments in AI also reflect a broader trend in the region. Countries across the Middle East have recognised the potential of AI to drive job creation, improve efficiencies, and boost economic output. For Saudi Arabia, the sector could lead to rapid advancements in automated systems, machine learning, and AI-driven applications, spurring both domestic and regional interest.

By nurturing the local AI talent pool and advancing infrastructure, Wa’ed Ventures is set to create a thriving ecosystem that attracts top global talent and empowers local experts. Through these initiatives, Saudi Arabia not only aims to become a technological powerhouse but also to cultivate an innovation-driven culture. The country’s vision is to not only be a consumer of AI technologies but also an active contributor, shaping new frontiers in AI for applications that have a lasting impact on industries worldwide.

As Wa’ed Ventures continues to expand its AI portfolio, Saudi Arabia looks ahead to a future where AI solutions are seamlessly integrated across its industries, enhancing services, creating jobs, and bolstering economic resilience. Through strategic investments, localised expertise, and strong international partnerships, the Kingdom is positioning itself as a competitive force in the rapidly evolving global AI landscape.