Energy giant Aramco allocates $4bn to expand global VC programme

Aramco has allocated an additional $4bn to its global venture capital arm, Aramco Ventures.

With this move, it has more than doubled the capital allotted to the venture capital (VC) arm, raising its overall investment allocation from $3bn to $7bn.

It takes the company’s overall VC allocation to $7.5bn, including the $500m VC fund Wa’ed Ventures, which focuses on the startup ecosystem in Saudi Arabia.

In doing so, it aims to help advance the energy company’s long-term strategy, which focuses on new energies, chemicals, and transition materials, diversified industrial businesses and digital technologies.

Ahmad Al Khowaiter, the company’s EVP of Technology & Innovation, said: “Through Aramco Ventures, we aim to support pioneers with big ambitions, and ultimately help bring their ideas to life.

“By injecting an additional $4bn 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 worldwide, while also contributing to Aramco’s long-term objectives.”

Aramco Ventures’ funds

Before the new capital allocation, the VC arm managed three funds.

These include the:

• Digital/Industrial Fund, which stood at $500m, invests in technologies of strategic importance to Aramco
• Prosperity7 Fund with $1bn, invests in disruptive technology ventures beyond the energy sector
• Sustainability Fund, which stood at $1.5bn, invests in startups with the potential to support Aramco’s ambition to achieve and gas emissions across its wholly-owned and operated assets by 2050.

In other news, leading brand valuation consultancy Brand Finance, which annually reviews and rates 5,000 of the biggest global brands, revealed that the Saudi energy giant retained its status as the most ‘valuable’ Middle Eastern brand in the global ranking, followed by ADNOC and stc.

Read: Revealed! Here are the Middle East’s most valuable brands