ARAMCO expands its global footprint in bold capital injection of $4 billion

Saudi Aramco has announced the expansion of its global capital arm, Aramco Ventures, by injecting an additional $4 billion.

According to the statement, this will lead to doubling the capital allocated to Aramco Ventures, increasing its total investment reserves from 3 billion dollars to 7 billion dollars.

Venture capital fund

This will increase the total allocation of capital for “Aramco” to $7.5 billion, which also includes the “Wa’ed Ventures” capital fund worth $500 million, which focuses on startups in Saudi Arabia.

The decision to designate capital ventures in “Saudi Aramco” reflects the increasing importance of the program in facilitating the development of new and innovative technologies, creating diversification opportunities for the company, and paving the way for collaboration with start-up ventures. Through this, the program aims to assist in enhancing the company’s long-term strategy, which includes a focus on new energy sources, chemicals and material transformation, diverse industrial businesses, and digital technologies.

In response, the Executive Vice President for Technology and Innovation at Aramco, Ahmad Al-Khowaiter, stated that innovation is a key element in addressing some of the major challenges the world faces today, including energy transition. He added that through Aramco Ventures, they aim to support ambitious entrepreneurs and help bring their ideas to life.

He indicated that by injecting an additional amount of $4 billion in funding over the next four years, we intend to provide the necessary financial support to elevate the solutions that make a difference to a higher level. He added that it will provide significant momentum for companies at different stages of development around the world, and also contribute to achieving Saudi Aramco’s long-term goals.

Before the expansion, “Aramco Ventures” managed 3 funds: a digital/industrial fund currently valued at $500 million, which invests in strategically important technologies for Aramco; the “Prosperity7” fund with a capital of $1 billion, which invests in advanced technology projects outside the energy sector; and the sustainability fund, which reached $1.5 billion. It invests in startups that have the ability to support Aramco’s ambition to achieve net-zero emissions in both Scope 1 and 2 gases through its wholly owned and operated assets by 2050.