Aramco injects additional $4 billion into Aramco Ventures
Aramco injects additional $4 billion into Aramco Ventures
- Saudi Arabia’s oil giant, Aramco, has allocated an additional $4 billion to its global venture capital arm, Aramco Ventures.
- This will take Aramco’s overall VC allocation to $7.5 billion, including the $500 million VC fund Wa’ed Ventures, which focuses on developing the startup ecosystem in Saudi Arabia.
- The new capital injection will provide investment for companies at various stages of development around the world while also contributing to Aramco’s long-term objectives, which include a focus on new energies, chemicals and transition materials, diversified industrial businesses, and digital technologies.
Press release:
Aramco, one of the world’s leading integrated energy and chemicals companies, has allocated an additional $4 billion to its global venture capital arm, Aramco Ventures. It will more than double the capital allotted to Aramco Ventures, increasing its total investment allocation from $3 billion to $7 billion.
It will take Aramco’s overall venture capital allocation to $7.5 billion, which also includes the $500 million venture capital fund Wa’ed Ventures, which focuses on the start-up ecosystem in the Kingdom of Saudi Arabia.
The decision reflects the growing significance of Aramco’s venture capital programme in enabling the development of disruptive new technologies, creating diversification opportunities for Aramco, and paving the way for collaborations with innovative start-ups. 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.
Ahmad Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, said: “Innovation is key to addressing some of the fundamental challenges facing the world today, including the energy transition. Through Aramco Ventures, we aim to support pioneers with big ambitions and ultimately help bring their ideas to life. 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.”
Prior to the new capital allocation, Aramco Ventures managed three funds. These are the Digital/Industrial Fund, which stood at $500 million, investing in technologies of strategic importance to Aramco; the Prosperity7 Fund, with $1 billion, investing in disruptive technology ventures beyond the energy sector; and the Sustainability Fund, which stood at $1.5 billion and invests in start-ups with the potential to support Aramco’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050.
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