Saudi Arabia has launched a first-of-its-kind artificial intelligence venture fund as Red Sea Global (RSG) partners with Bunat Ventures to support the kingdom’s next generation of tech champions.

The newly established fund will focus on early- and growth-stage startups that are either AI-native or use artificial intelligence as a core part of their business model, according to a press release. Over the next three years, it aims to support around 25 companies.

Beyond financial backing, the fund will provide Saudi-based startups with access to real-world testing environments across Red Sea Global’s extensive operations, including luxury resorts and an international airport. This will provide a rare opportunity to pilot and scale solutions in live settings.

Sultan Moraished, Group Head of Technology and Corporate Excellence at Red Sea Global, described the initiative as a strategic investment in the future. “At Red Sea Global, we view innovation as a catalyst for a regenerative future,” he said, adding that the partnership reflects the company’s belief that technology is central to sustainability and digital transformation in the kingdom.

The fund aims to strengthen Saudi Arabia’s innovation ecosystem by supporting local entrepreneurs as well as Saudi-founded global startups entering the market. Its broader objectives include job creation, attracting international talent, and reinforcing the kingdom’s position as a global AI hub.

Khaled Zainalabedin, CEO and managing partner at Bunat Ventures, highlighted the collaborative nature of the initiative. “Our collaboration with Red Sea Global brings together visionary development and agile venture capital,” he said, noting that the platform is designed to empower a new wave of Saudi AI pioneers capable of reshaping industries and communities.

Red Sea Global, the developer behind the regenerative tourism destinations The Red Sea and AMAALA, welcomed its first guests to The Red Sea in 2023 and now operates 10 resorts alongside an international airport. The fund’s launch aligns with the continued expansion of its flagship destination, including the opening of the first resorts on Shura Island later this year.