Aramco expands global venture capital program with $4 billion fund injection

Dhahran, Jan. 17 (BNA): Aramco has allocated an additional $4 billion to its global venture capital arm Aramco Ventures, more than doubling the capital allotted to it, from $3 billion to $7 billion, according to a press release from Aramco.

 

Aramco’s overall venture capital allocation is $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 program 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 and Innovation, said that innovation is important in addressing important 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 for businesses at various stages of development around the world, while also contributing to Aramco’s own long-term objectives,” Al Khowaiter added.

 

Prior to the new capital allocation, Aramco Ventures managed three funds: 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.”

 

H.F.