Aramco Ventures, the venture capital arm of Saudi Aramco, has announced a major initiative to attract 100 leading industrial artificial intelligence startups from around the world to Saudi Arabia. The move is backed by a recently doubled fund of $7 billion and aims to leverage the Kingdom’s rapidly growing technology ecosystem.
A Global Challenge For Industrial AI
Speaking at a session at the World Economic Forum in Davos, Aramco Ventures CEO Mahdi Adel revealed that the firm is preparing to launch significant industrial AI challenges. The goal of these challenges is to identify and attract the top 100 global startups in the sector to establish a presence on Saudi Arabia’s East Coast, capitalizing on the momentum within the country’s tech landscape.
Adel noted that the impressive growth of Saudi Arabia’s fintech and e-commerce sectors encourages the firm to bring its global portfolio companies into the local market. He explained that any company whose operations align with the Saudi environment is connected with Aramco Ventures’ domestic portfolios.
The Kingdom’s Competitive Edge In AI
Saudi Arabia is positioning itself as a uniquely attractive hub for AI technologies. According to Adel, a key competitive advantage is the availability of low-cost energy, with photovoltaic energy priced as low as $0.05 per kilowatt-hour. This is complemented by a clear government strategic direction and a supportive regulatory framework.
The Kingdom also offers ample land for building the large-scale data centers essential for AI development, along with a vast pool of young talent, with a significant portion of the population under the age of 30. This combination creates a fertile environment for nurturing next-generation technologies.
Backed By A Doubled War Chest and Proven AI Success
The initiative is supported by significant financial firepower. In 2024, Saudi Aramco allocated an additional $4 billion to its global venture capital arm, doubling the total capital for Aramco Ventures from $3 billion to $7 billion.
This investment follows the parent company’s success in monetizing its own AI applications. Saudi Aramco President and CEO Amin Nasser stated that the company generated $6 billion in technology revenues during 2023 and 2024, with over half of that amount attributed directly to AI. Nasser projected an additional $3 to $5 billion in tech revenue for 2025, with AI continuing to contribute more than 50% as the company plans to commercialize its solutions.
About Aramco Ventures
Aramco Ventures is the corporate venture capital arm of Saudi Aramco, the world’s leading integrated energy and chemicals company. Its mission is to invest in globally distinguished startups and support three key strategic pillars: fostering technological innovation, advancing digital transformation and Industry 4.0 technologies, and contributing to the development of low-emission energy solutions.
Source: Asharq Business
