Saudi Aramco, the titan of the oil industry, has recently increased the funds allocated to its venture capital arm, Aramco Ventures, by an impressive $4 billion. This significant infusion elevates the total venture capital commitment of the company to a substantial $7.5 billion.
This strategic move includes an additional $500 million directed towards Wa’ed Ventures, a venture capital fund dedicated to nurturing the startup ecosystem within Saudi Arabia. According to a statement released by Aramco on Wednesday, the company’s overarching venture capital allocation now stands at $7.5 billion.
Ahmad Al Khowaiter, Aramco’s Executive Vice President of Technology and Innovation, expressed the company’s intentions, stating, “By injecting an additional $4 billion in funding over the next four years, we aim to provide the financial support required to elevate groundbreaking solutions to new heights. This will offer vital momentum to businesses at different stages of growth globally, while simultaneously bolstering Aramco’s own strategic goals.”
Aramco Ventures oversees three distinct funds. The Digital/Industrial Fund, with $500 million in capital, focuses on investments in technologies critical to Aramco’s operations. Another fund, Prosperity7, has $1 billion at its disposal, targeting disruptive technology ventures outside the scope of the energy sector.
The third, the Sustainability Fund, is armed with $1.5 billion and aims to back startups that align with Aramco’s ambitious goal to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions by 2050 for its fully owned and operated assets.
Alongside other oil and gas majors, including UAE’s Adnoc, Aramco has committed to the Oil and Gas Decarbonisation Charter at Cop28, pledging to reach net-zero emissions by 2050 or sooner. The companies also aspire to achieve “near-zero” upstream methane emissions and eliminate routine flaring by 2030.
The expansion of venture capital resources is projected to propel Aramco’s long-term strategy, which increasingly emphasizes sectors like chemicals, transition materials, and digital technologies.
Recently, Aramco marked its foray into Pakistan’s fuel retail market by agreeing to take a 40% equity stake in Gas & Oil Pakistan. This move underscores Aramco’s strategy to enhance its downstream value chain on a global scale.