Saudi Aramco’s Wa’ed Ventures earmarks $100m for AI investments

Saudi Aramco’s Wa’ed Ventures earmarks $100m for AI investments
AI could contribute an estimated $135 billion to the Kingdom’s economy by 2030, accounting for over 12 percent of the country’s projected gross domestic product. Shutterstock
Short Url
Updated 27 October 2024
Follow

Saudi Aramco’s Wa’ed Ventures earmarks $100m for AI investments

Saudi Aramco’s Wa’ed Ventures earmarks $100m for AI investments

RIYADH: Saudi Arabia’s $500 million venture capital fund, Wa’ed Ventures, a wholly-owned subsidiary of Aramco, has earmarked $100 million to invest in artificial intelligence startups. 

The initiative aligns with the Kingdom’s ambition to position itself as a global AI hub and drive economic growth through technology-driven innovation. 

Wa’ed Ventures has also established an advisory board comprised of prominent leaders in the AI sector to facilitate deal sourcing and support the localization of global talent. 

The board members bring expertise from diverse fields, including policymaking, research and academia, as well as entrepreneurship, with backgrounds from major institutions like Meta, Amazon, The Massachusetts Institute of Technology, and Oxford. 

The advisory board is expected to guide Wa’ed in identifying high-potential AI investments and accelerate the integration of advanced technologies within the Kingdom. 

“Our strategic decision to allocate funds to AI investments is rooted in a deep understanding of the Kingdom’s growing ecosystem,” said Anas Al-Gahtani, acting CEO of Wa’ed Ventures. 

“By fostering innovation and supporting AI startups, we aim to accelerate the development of cutting-edge technologies that will drive economic growth, improve quality of life, and position Saudi Arabia as a global leader in artificial intelligence. This investment will not only incentivize local entrepreneurs but also support the localization of global talent, ultimately unlocking the immense potential of AI,” Al-Gahtani added. 

The investment strategy comes as Saudi Arabia’s AI market is projected to see a substantial economic impact over the next decade. 

According to a report by PwC, AI could contribute an estimated $135 billion to the Kingdom’s economy by 2030, accounting for over 12 percent of the country’s projected gross domestic product. This would position the technology as one of the nation’s most significant economic drivers. 

Wa’ed Ventures has already begun executing its AI investment strategy with recent stakes in innovative companies such as Korea’s AI chipmaker Rebellions and the California-based aiXplain, which specializes in essential infrastructure for accelerated development. 

These investments underscore Wa’ed Ventures’ commitment to advancing the Kingdom’s AI ecosystem by supporting high-potential technology companies and infrastructure players within the field. 

A recent study by McKinsey & Co. indicates that AI technologies are likely to contribute more than $13 trillion to the global economy by 2030, and Saudi Arabia has the potential to capture a considerable share of this growth. 

Established in 2013, Wa’ed Ventures manages a portfolio of over 70 startups, providing end-to-end support, from funding to providing access to partner resources. 


Airbus opens regional headquarters in Riyadh

Airbus opens regional headquarters in Riyadh
Updated 18 sec ago
Follow

Airbus opens regional headquarters in Riyadh

Airbus opens regional headquarters in Riyadh

RIYADH: Airbus has officially opened its new Regional Headquarters in Riyadh, reinforcing its long-term commitment to Saudi Arabia and the broader Middle East.

This expansion marks a key milestone in Airbus’ efforts to enhance its commercial, defense, space, and helicopter operations in the Kingdom and the region.

The new HQ highlights Airbus’ growing involvement in Saudi Arabia’s aviation and aerospace sectors, where the company has been active since the 1970s. Airbus currently employs over 350 people in Saudi Arabia, with 30 percent of its workforce being Saudi nationals. The company aims to further boost local talent development and technological expertise.

This move aligns with Saudi Arabia’s regional headquarters program, which offers incentives such as a 30-year corporate income tax exemption, withholding tax exemptions, and various support services for businesses.

Eid Al-Qahtani has been appointed as the president of Airbus’ Riyadh-based regional headquarters. With more than 20 years of leadership experience — including his previous role as head of operations for Airbus Helicopters in Riyadh — Al-Qahtani will focus on strengthening partnerships with governments and stakeholders, as well as driving new business in the region.

Wouter Van Wersch, president of Airbus International, praised the appointment: “We are privileged to have Eid Al-Qahtani leading our operations in Saudi Arabia. His deep understanding of the country's goals and his proven leadership in the region make him the ideal person for this role.”

Earlier this year, Airbus signed an Industrial Participation agreement with Saudi Arabia’s General Authority for Military Industries, supporting the Kingdom’s Vision 2030 objectives.

This collaboration includes technology transfers and initiatives for industrial localization, such as SAMI Airbus Aircraft Maintenance Services — a joint venture between Saudi Arabian Military Industries and Airbus.

Al-Qahtani expressed his enthusiasm: “I am honored to lead Airbus from our new headquarters in Riyadh. Saudi Arabia is a strategically important market for us, and we are committed to supporting the Kingdom’s long-term goals while nurturing the next generation of aerospace leaders.”

Saudi Arabia’s efforts to attract international businesses are paying off. The Kingdom has already surpassed its 2030 target of 500 regional headquarters, with 540 international companies now established in Riyadh, according to Minister of Investment Khalid Al-Falih.

“Investors are coming not only for our vibrant market but also to explore the broader region,” he said.


Saudi Arabia a key player in global energy transition, says IRENA chief

Saudi Arabia a key player in global energy transition, says IRENA chief
Updated 5 min 3 sec ago
Follow

Saudi Arabia a key player in global energy transition, says IRENA chief

Saudi Arabia a key player in global energy transition, says IRENA chief

RIYADH: Saudi Arabia is set to deepen its collaboration with the International Renewable Energy Agency to advance sustainability initiatives, according to a senior official. 

Speaking to Arab News on the sidelines of the UN Convention to Combat Desertification COP16, Francesco La Camera, director-general of IRENA, stated that Saudi Arabia is a key leader in transitioning away from fossil fuels, thanks to the Kingdom’s Green Initiative. 

He also highlighted global progress in renewable energy, noting that last year saw a record increase in capacity, driven by advancements in green hydrogen and sustainable biomass.

“We are working on signing an agreement with the GCC countries, so we will see when we will be ready. We will announce that we are working more closely with Saudi Arabia on our topics and our area of interest,” La Camera said. 

He added: “Just to give you an example now, ACWA Power is a Saudi company, but it is the elite company for decentralization. They invest in 12 different countries, and this is something amazing, and this is an effort also outside the country to work for the energy transition, providing water in a country that stresses all this.” 

The IRENA director-general stressed the importance of all nations, including Saudi Arabia, to increase efforts, with the expectation that updated national climate contributions will be submitted before February 2025. 

“Everyone has to do more, so we expect to see also the national climate contribution to be presented before February 2025. We also hope that our presence at COP will allow us to have more discussion and to increase the level of engagement of Saudi in the work of IRENA,” La Camera said. 

He added: “We think that, inevitably, Saudi is a leading country on all of this. It has the potential. It has the resources. It has the leadership to go faster and scale in the energy transition.” 

La Camera also outlined a strategy to address the structural challenges hindering the deployment of renewable energy at the speed and scale required to meet global energy and climate goals. 

The focus is on overcoming infrastructure barriers by creating interconnected, flexible, and balanced grids that can support a higher integration of renewable energy. 

This is where regional collaboration comes in, which is essential to achieving this objective. 

“I emphasize the role of the infrastructure. We need groups that are interconnected, flexible, and balanced to allow more renewables. Regional collaboration is crucial,” La Camera said. 

During his keynote speech at the Saudi Green Initiative, La Camera spoke about the need to design the market in a way that is more favorable for renewables. 

“We need to strengthen the capacity of the distribution to deal with this through a system that is more distributed instead of centralized, and also the need to reskill the personnel that is moving from the fossil fuel to the renewable area,” he said. 

La Camera concluded the interview by highlighting IRENA’s long-term planning efforts, which are essential for aligning financial investments with the needs of the renewable energy sector. 


Land degradation driving global instability and forced migration, warns Saudi envoy at COP16

Land degradation driving global instability and forced migration, warns Saudi envoy at COP16
Updated 31 min 3 sec ago
Follow

Land degradation driving global instability and forced migration, warns Saudi envoy at COP16

Land degradation driving global instability and forced migration, warns Saudi envoy at COP16

RIYADH: Forced migration due to land degradation is a global challenge that needs to be tackled, according to Saudi Arabia’s climate envoy. 

Taking center stage at COP16 in Riyadh, Adel Al-Jubeir described the phenomenon as a driving force behind security crises, highlighting food, air quality, and biodiversity as areas of concern. 

Addressing delegates, Al-Jubeir painted a stark picture of the cascading impacts of degraded land, calling for unified global action to halt the alarming trend.

“Land degradation impacts every single human being,” he said, linking the loss of productive land to the displacement of millions and the destabilization of entire regions. “When people cannot grow food, they migrate. This migration often leads to tension and conflict in the receiving areas, creating a cycle of dislocation and violence.” 

The figures are sobering, with 100 million hectares of land lost annually — an area the size of Egypt — while the global population continues to rise, intensifying pressure on diminishing resources.

Al-Jubeir emphasized that addressing land degradation is a matter of environmental urgency and a cornerstone of global security. “This is an issue that touches every aspect of our lives — food security, national security, migration, air quality, and biodiversity,” he said, urging nations to collaborate on solutions to reverse degradation and restore the Earth’s ability to absorb carbon.

The discussion was further elevated by Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification, whose address highlighted the profound human toll of land degradation.

“People do not migrate because they want to; they do so because they have no choice,” he said, he described how the loss of fertile land compels millions to flee their homes. 

Thiaw drew a direct line between environmental degradation and global displacement trends, citing data showing that up to 7 billion people could be affected by droughts by 2050. He linked 40 percent of interstate conflicts to disputes over natural resources, underscoring the link between environmental collapse and geopolitical instability.

His solution was clear and direct: land restoration. “Investing in land restoration is investing in keeping people safe at home,” Thiaw said, adding: “It is about giving them the dignity to produce food, educate their children, and live securely without being forced to migrate.” 

He called on global leaders to prioritize sustainable agricultural practices and ecological restoration, noting that these investments could break the cycles of forced migration and conflict.

The intersection of environmental sustainability, migration, and security presented at COP16 has underscored the need for urgent, united action. 

With Saudi Arabia championing this agenda on the global stage, and as negotiations proceed over the course of the next two weeks, the focus now shifts to translating bold commitments into tangible outcomes that safeguard communities and ecosystems worldwide.


Sovereign wealth funds commit to advancing Paris Agreement goals at Riyadh summit

Sovereign wealth funds commit to advancing Paris Agreement goals at Riyadh summit
Updated 59 min 19 sec ago
Follow

Sovereign wealth funds commit to advancing Paris Agreement goals at Riyadh summit

Sovereign wealth funds commit to advancing Paris Agreement goals at Riyadh summit

RIYADH: Sovereign wealth funds have committed to intensifying their efforts to align financial investments with the goals of the Paris Agreement, marking a significant milestone in global climate finance.

At the 7th Annual One Planet Sovereign Wealth Funds CEO Summit in Riyadh, more than 140 global financial leaders, including French President Emmanuel Macron and Saudi Arabia’s Public Investment Fund Gov. Yasir Al-Rumayyan, presented strategies to accelerate the transition to a net-zero economy.

Held alongside COP29 and the Saudi Green Initiative, the summit brought together SWFs managing a combined total of $46 trillion in assets. These funds reaffirmed their dedication to integrating climate considerations into their investment portfolios.

In his speech, President Macron urged SWFs to play a more active role in driving sustainable investments. “Members of the OPSWF Network have the unique opportunity to lead a structural shift in global markets, steering investments toward climate resilience. By leveraging high-quality climate data and ensuring transparency, you are setting new standards for how markets assess sustainability,” Macron said.

He also highlighted the importance of innovative financial instruments, such as biodiversity credits, to help fast-track the transition to a sustainable global economy.

Al-Rumayyan echoed Macron’s call, emphasizing the PIF’s commitment to climate-aligned investments. “PIF is dedicated to achieving net-zero emissions by 2050, in line with Saudi Arabia’s goal of reaching net-zero by 2060. Renewables are a key focus for PIF, and we are working to localize renewable energy and hydrogen production to meet the target of developing 70 percent of the nation’s renewable energy capacity,” Al-Rumayyan stated.

The PIF governor also highlighted PIF's leadership in green finance, noting that it was the first sovereign wealth fund to issue a green bond and the first to launch a 100-year green bond.

“PIF, along with other OPSWF members, is fostering a sustainable and inclusive investment approach that ensures no one is left behind in the transition to net-zero,” he added.

A major theme of the summit was refining investment strategies to better incorporate climate considerations. Many OPSWF members have advanced their due diligence processes, using greenhouse gas emissions data and setting measurable climate-related targets. These efforts are geared toward scaling up investments in renewable energy, supporting green finance in challenging sectors, and utilizing AI technologies to enhance emissions reduction efforts.

During the summit, participants emphasized the need for greater transparency in climate data. OPSWF members agreed to improve climate-related disclosures, providing investors with clearer insights into risks and enabling them to align their portfolios with climate goals. A key initiative discussed was the development of platforms for real-time emissions tracking to support investment decisions.

Technology played a central role, with AI and climate data platforms highlighted as critical tools for improving investment efficiency and tracking emissions. The summit also focused on strategies for decarbonizing hard-to-abate sectors like energy, real estate, and hydrogen, with clean hydrogen identified as a pivotal solution for the global energy transition.

In addition, the summit addressed sustainable building practices to reduce emissions in real estate and launched initiatives to promote renewable energy investments in emerging markets, particularly in Africa. Participants committed to expanding nature-based solutions, aiming to deliver both long-term climate and financial benefits.


Saudi Arabia’s shift to renewables is reaping economic rewards, says minister

Saudi Arabia’s shift to renewables is reaping economic rewards, says minister
Updated 28 min 26 sec ago
Follow

Saudi Arabia’s shift to renewables is reaping economic rewards, says minister

Saudi Arabia’s shift to renewables is reaping economic rewards, says minister

RIYADH: Saudi Arabia is the only country profiting from the global energy transition due to its sound economic approach, feasibility studies, and solid partnerships, according to the Kingdom’s energy minister.

Speaking at the opening of the fourth edition of the Saudi Green Initiative Forum in Riyadh, which runs from Dec. 3-4, Prince Abdulaziz bin Salman emphasized that Saudi Arabia is uniquely positioned to benefit from its shift toward a sustainable energy economy, particularly in comparison to other nations.

The Kingdom boasts the second-lowest methane intensity among major oil and gas producers. It also ranks second globally in terms of crude oil carbon intensity and plans to tender 20 gigawatts of renewable capacity in 2024 — a target exceeded only by China and the US.

“We are the only country on planet Earth that is making money out of the transition. Why? Because we are honest about our transition, we don’t do things without going through economics, without feasibility studies, without even choosing solid partners,” the minister explained.

“Total is a good example. They are working with us on petrochemicals, on gas stations, on renewables,” he added.

Prince Abdulaziz further noted that part of the Kingdom’s transition strategy involves replacing one million barrels of oil per day with gas and renewable energy — a significant milestone.

He stressed that energy security should not be compromised in the transition. “By the way, you would not be able to secure the other two, which are affordability and sustainability. The reality check is that the three things have to go hand in hand, and you should not compromise, and compromising one of the things will lead you to forfeit the other two, especially energy security,” he said.

On the Kingdom’s Vision 2030, the minister expressed confidence in long-term plans, stating: “I know for certain that there will be a 2040, there will be a 2050 because it works. People are on their doors; people are held accountable. People want to deliver because they see that whatever they were they’re delivering is impacting their daily life, is improving their lot.”

He continued: “We have a lot to show, and we want to make sure that aside from our commitments, with its own durations, we want to put this event, especially this Saudi Green Initiative, to make sure that people can continue seeing us progress our progress here in this country in a voluntary way because we are self-assured that every year we shall expose the world to new achievements, new targets, new approaches, and we are not shy from gathering people to see it.”

During the first day of the event, the Ministry of Energy signed 10 agreements and memorandums of understanding with various companies.

One of the key agreements focuses on deploying a carbon capture and utilization hub in Yanbu Industrial City, in collaboration with the Royal Commission for Jubail and Yanbu. The Ministry also signed a deal with King Abdullah University of Science and Technology on cryogenic carbon capture and another with the King Abdullah Petroleum Studies and Research Center and Climeworks for a direct air capture feasibility study.

Other MoUs included partnerships with Academy 32 to support the Regional Collaboration Initiative for Emissions Reduction, and with JEDCO and Tarshid to enhance energy efficiency efforts. Additionally, the Ministry inked agreements with SAL and Tarshid for a detailed facility study, and with Lindea and the Middle East Green Initiative to develop clean cooking solutions.

A funding agreement for the Clean Cooking Initiative was also announced in collaboration with Sipchem and the Middle East Green Initiative, as well as a similar deal focused on air products.

The Ministry of Energy also revealed plans to implement carbon-cured concrete in NEOM, in partnership with Abdullah Abdin, Carbon Cure, and Gulf Cryo.

 

During the event, the Ministry of Energy and the Ministry of Economy and Planning also announced the winners of the Carbon Capture and Utilization Challenge. 

In fifth place was Gasgene for converting carbon to ethanol and acetone chemicals, biofuels, and animal proteins. Dioxycle secured fourth place for converting carbon to ethylene used for plastics, chemicals, rubber vinyl, and medical applications.

In third place was Carbon to Stone for converting carbon to carbonate users for construction materials. D-CRBN won second place for converting carbon to chemicals, fuels, organic acids, and polymers. 

Up Catalyst came in first place for converting carbon to battery-grade graphite and nanomaterials.

Commenting on the winners, Fasial Al-Ibrahim, the Saudi minister of economy and planning, said: “The winners today embody the spirit of innovation and ingenuity that is proving invaluable in our pursuit of a more sustainable world.” 

He added: “When it comes to the solutions that we’ve seen, we’re looking forward to implementing them on the ground.” 

Al-Ibrahim went on to stress how there’s no better place in the world for bold thinkers to collaborate, act, innovate, and solve the world’s greatest challenges than in Saudi Arabia. 

“We recognize that the climate crisis knows no borders, and neither should our solutions. We must scale solutions without borders. Decarbonizing the industry, energy, and power sectors, which depend on carbon management, will go a long way to fully build a sustainable and climate-resilient economy, and that is why this challenge matters,” he said.

This year’s edition of the Saudi Green Initiative Forum, held during COP16, aims to tackle pressing global environmental challenges, such as land rehabilitation, carbon reduction innovations, and sustainable financing. It will also explore the role of natural solutions in helping communities adapt to climate change, while emphasizing efforts to preserve the Kingdom’s rich biodiversity, according to an official statement.