Saudi Arabia to Create Largest Venture Capital Fund Globally

Saudi Arabia to Create Largest Venture Capital Fund Globally

Saudi Aramco announced on Wednesday the creation of a $1.5 billion sustainability fund to invest in technology to support a stable and comprehensive energy transition. This is considered one of the largest sustainability-focused venture capital funds globally.

Aramco’s decision to start the fund aligns with Saudi efforts to reduce greenhouse gas emissions.

It was unveiled at the sixth edition of the Future Investment Initiative (FII). Managed by Aramco Ventures, the venture capital arm of Aramco, the fund is an extension of the company’s efforts to meet the world’s growing energy demand, with lower greenhouse gas emissions.

The fund plans to invest in technologies that support the Company’s announced net-zero 2050 ambition in its wholly-owned operational assets, as well as development of new lower-carbon fuels.

Initial focus areas will include carbon capture and storage, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia, and synthetic fuels. The fund will target investments globally.

Moreover, Aramco’s wholly-owned subsidiary Aramco Trading Company has participated in the first voluntary carbon credits auction organized by the Public Investment Fund (PIF).

It follows the signing of a Memorandum of Understanding between Aramco and PIF earlier this year, to participate in a regional voluntary carbon market to be launched in Saudi