RIYADH: Saudi Arabia’s $500 million venture capital fund, Wa’ed Ventures, a wholly-owned subsidiary of Aramco, has allocated $100 million to invest in artificial intelligence startups.

This move aligns with the Kingdom’s goal to establish itself as a global AI hub and promote economic growth through technological innovation. Wa’ed Ventures has formed an advisory board consisting of leading AI experts to aid in deal sourcing and talent localization.

The board members, with backgrounds from institutions like Meta, Amazon, MIT, and Oxford, bring diverse expertise in policymaking, research, academia, and entrepreneurship. Their role is to help Wa’ed identify promising AI investments and integrate advanced technologies within the Kingdom.

“Our strategic decision to invest in AI is based on a thorough understanding of the Kingdom’s expanding ecosystem,” said Anas Al-Gahtani, acting CEO of Wa’ed Ventures. “By nurturing innovation and supporting AI startups, we aim to develop cutting-edge technologies that will boost economic growth, enhance quality of life, and position Saudi Arabia as a global leader in AI. This investment will not only encourage local entrepreneurs but also facilitate the localization of global talent, unlocking the vast potential of AI,” Al-Gahtani added.

This investment strategy is timely, as Saudi Arabia’s AI market is expected to have a significant economic impact over the next decade. According to PwC, AI could contribute an estimated $135 billion to the Kingdom’s economy by 2030, making up over 12 percent of the country’s projected GDP.

Wa’ed Ventures has already started implementing its AI investment strategy by investing in innovative companies like Korea’s AI chipmaker Rebellions and California-based aiXplain, which focuses on essential infrastructure for accelerated development.

A recent McKinsey & Co. study suggests that AI technologies could add more than $13 trillion to the global economy by 2030, and Saudi Arabia is poised to capture a substantial portion of this growth. Established in 2013, Wa’ed Ventures manages a portfolio of over 70 startups, offering comprehensive support from funding to access to partner resources.

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