A substantial financial boost of US$100 million has been earmarked for Saudi Arabia’s technology innovation sector, thanks to a new agreement between Gulf Capital and the Saudi Research Development and Innovation Authority (RDIA). The investment is set to energize local development and attract international tech companies to the Kingdom.
The collaboration was formalized in Riyadh with the signing of a Letter of Intent by Dr. Rami Niazi, Vice Governor of Strategy at RDIA, and Dr. Karim El Solh, CEO and Co-Founder of Gulf Capital.
This partnership entails Gulf Capital working in conjunction with RDIA to support and finance the scaling up of Saudi-based tech companies. The sectors poised to benefit include healthcare, health-tech, fintech, energy, renewables, and sustainability. Moreover, the alliance will also play a key role in introducing international innovation-driven companies into the Saudi market.
“We aim to bolster the professional and technical growth of local firms and welcome international companies to the Kingdom, aligning with our ambitions for the research, development, and innovation sectors,” stated Dr. Mohammed Alotaibi, General Supervisor at RDIA.
Dr. Karim El Solh of Gulf Capital expressed excitement about the investment program and the potential to amplify foreign direct investments in Saudi Arabia, noting the country’s rapid progress towards achieving its Vision 2030.
Prior investments by Gulf Capital in Saudi Arabia exceed SAR 2.2 billion, with a focus on technologies and companies with dominant market shares. This new venture with RDIA aims to heighten investment in high-growth companies that resonate with the nation’s Vision 2030 goals.
Alvaro Abella, Managing Director at Gulf Capital, acknowledged Saudi Arabia’s rising stature as a tech startup hub, with the country securing top rank in MENA for venture capital funding last year as per Magnitt.
Gulf Capital boasts a diverse portfolio within Saudi Arabia, including investments in healthcare, fintech, and payment services. A prime example is Geidea, which supports SMEs and streamlines payment processes.
The agreement between Gulf Capital and RDIA is a testament to the commitment towards propelling Saudi Arabia as a leading center for innovation and technology, simultaneously promoting the region’s economic growth and diversification.