Aramco Raises Venture Capital to $7.5B
Saudi Arabian Oil Co. (Aramco) has injected an additional $4 billion into its global venture capital arm to boost diversification and expansion in new technologies.
The new investment raises Aramco Ventures’ capital to $7 billion and Aramco’s overall venture capital to $7.5 billion counting the $500-million Wa’ed Ventures, which focuses on Saudi start-ups.
“The decision reflects the growing significance of Aramco’s venture capital program in enabling the development of disruptive new technologies, creating diversification opportunities for Aramco, and paving the way for collaborations with innovative start-ups”, the state-owned energy giant said in a recent statement. “In doing so, it aims to help advance the Company’s long-term strategy, which includes a focus on new energies, chemicals and transition materials, diversified industrial businesses, and digital technologies”.
One of the three funds managed by Aramco Ventures, Prosperity7, said it has now grown in capital to $3 billion from $1 billion.
“The newly injected fund will continue to be deployed to support global early to growth-stage enterprises with disruptive technologies, driving the development of next-generation technologies and transformational business models that will bring prosperity and positive impact on a vast scale”, Prosperity7 said in a separate statement.
“Since its conception in 2020, Prosperity7 has invested in more than 40 companies globally, across a number of cutting-edge sectors such as Enterprise Tech, Fintech, AI, B2B, Consumer Tech and MedTech”.
The Sustainability Fund, another Aramco Ventures portfolio investor, supports projects that advance Aramco’s goal of net zero scope 1 and 2 emissions by 2050.
The other one, the Digital/Industrial Fund, backs technology businesses that can add value to Aramco’s operations.
Aramco executive vice-president for technology and innovation Ahmad Al Khowaiter said in a statement about the additional capital injection, “By injecting an additional $4 billion in funding over the next four years, we intend to provide the financial backing required to take game-changing solutions to the next level”.
“This will provide crucial impetus to businesses at various stages of development around the world, while also contributing to Aramco’s own long-term objectives”, Al Khowaiter added.
Saudi Arabia, the top exporter in the Organization of the Petroleum Exporting Countries, is diversifying its economy by refocusing government investment on private and other sectors, as laid out in Saudi Vision 2030.
The Saudi development roadmap targets to raise non-oil state revenue to SAR 1 trillion ($266.6 billion) by boosting investment in other sectors such as mining, tourism and small and medium enterprises, as well as by privatizing state assets.
To contact the author, email jov.onsat@rigzone.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.