The STC Group will invest an initial amount of $50 million that is self-financed, making it the only investor in the fund at this stage. 

Other local and international companies will be invited to invest in this fund at a later stage.

“This fund targets the local market and invests in local Saudi expertise, talent, and venture capital ideas in the field of IT and telecommunications in addition to other markets in the Middle East, North Africa, Europe, and the United States with a purpose to reduce investment risks in the fund,” STC Group CEO Saud bin Majed Al-Daweesh said following the signing of the agreement.

He added: “The establishment of this fund comes as part of the Kingdom’s strategic direction and its drive to transform to a knowledge-based economy by enriching the spirit of both initiative and innovation being a fund that invests in start-ups and small and medium businesses which develop products and services in the field of telecommunications and information technology.  In return this creates a market and key investment opportunities by being the first to have access to technologies and modern services as well as enter into new partnerships. Doing so will create new job opportunities, encourage and develop innovation and creativity and continuous development as well support the infrastructure for knowledge economy.”