Aramco Expands Global Venture Capital Program by Injecting $4 billion Funds

Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, on Wednesday announced that it 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 that focuses on the start-up ecosystem in Saudi Arabia, the company said.

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 & Innovation, said that innovation has been the key to address 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,” he added.

Prior to the new capital allocation, Aramco Ventures managed three funds. These are a 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   and   gas emissions across its wholly-owned and operated assets by 2050.

Aramco Signs 55 Deals

Saudi Aramco has signed 55 agreements across sustainability, digital, industrial, manufacturing and social innovation sectors, as part of a major expansion of its Namaat industrial investment programs a few days ago.

Growing from 32 to 55 investments since last year, Namaat supports industrial investment partnerships to create jobs for Saudis and to contribute to national growth and capacity building.

“Namaat enables Aramco to be a catalyst for change across the Kingdom’s economy, while maintaining our reliability as a global energy supplier at a time of market uncertainty,” Ahmad Al-Sa’adi, Aramco senior vice president of technical services, said.