Saudi Arabian regenerative tourism developer Red Sea Global (RSG) has announced a strategic partnership with Abu Dhabi Global Market-regulated venture capital firm Bunat Ventures to launch a new venture fund dedicated to fostering artificial intelligence startups within the Kingdom.
The new fund will target investments in approximately 25 AI-native or AI-enabled companies over a three-year period, spanning from pre-seed to growth stages. This initiative aims to bolster local innovation by prioritising Saudi-based entrepreneurs and global Saudi-founded ventures looking to expand their operations into the country.
Fueling Saudi’s AI Ecosystem
The AI Venture Fund is designed to address a critical gap in the Saudi startup landscape for sector-specific capital. By combining direct funding with practical, real-world application environments, the partnership seeks to create a robust platform for local AI pioneers.
The collaboration intends to catalyze the broader innovation ecosystem by fostering collaboration between investors, academic institutions, and technology partners, while also attracting global talent and promoting knowledge exchange to drive long-term value creation.
Beyond Capital A Unique Testing Ground
A key differentiator of this fund is the unparalleled access it offers to investee companies. Saudi-based startups in the portfolio will be granted the opportunity to pilot and validate their technologies within the live operational infrastructure of Red Sea Global’s flagship destinations, The Red Sea and AMAALA.
This access to a real-world testing ground is expected to significantly de-risk technology development, reduce time-to-market, and increase investor confidence. By allowing startups to demonstrate their AI applications in complex tourism operations, the fund provides a direct path to commercial viability and tangible success, aligning with the Kingdom’s economic diversification objectives.
About Red Sea Global
Red Sea Global (RSG) is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) of Saudi Arabia. It is a world-leading developer behind some of the most ambitious regenerative tourism projects, including The Red Sea and AMAALA luxury destinations. RSG welcomed its first guests in 2023 and currently operates ten resorts and the Red Sea International Airport.
Source: Middle East AI News
