Saudi Aramco, a leader in the energy and chemicals sector, recently announced a significant strategic move by deciding to increase its investments in venture capital. An additional $4 billion has been allocated to its investment arm, Aramco Ventures, reflecting the company’s commitment to supporting innovation and developing new technologies.
This investment increase brings the total allocation for Aramco Ventures to $7 billion, effectively doubling the capital available for investments. Additionally, Saudi Aramco’s total venture capital allocation reaches $7.5 billion, including $500 million for the “Wa’ed Ventures” fund, dedicated to supporting startups in Saudi Arabia.
The new investment underscores the growing importance of the venture capital program at Saudi Aramco, aiming to enable the company to develop innovative technologies, create opportunities for diversification, and enhance collaboration with startups. This announcement comes in the context of Aramco’s focus on new energy sources, chemicals, material transformation, and digital technologies.
Ahmed Al-Khowaiter, Saudi Aramco’s Chief Technology Officer and Vice President for Technology and Innovation, commented on this decision, stating that “innovation plays a fundamental role in addressing global challenges such as energy transformation.” The additional investments through Aramco Ventures aim to support entrepreneurs in turning their ideas into tangible realities.
Before this expansion, Aramco Ventures managed three investment funds, including a fund focusing on strategic technologies for Aramco, the (Prosperity7) fund for investing in advanced technologies outside the energy sector, and the Sustainability Fund investing in startups that help achieve Aramco’s ambitious goals of reducing carbon emissions by 2050.
With this step, Saudi Aramco strengthens its position as a major player in global innovation, reaffirming its commitment to developing sustainable and innovative solutions that meet future energy needs and climate change challenges.