Saudi Aramco is boosting its investment in cutting-edge technologies and promoting disruptive innovation. The company wants to adapt to the evolving energy landscape and lead in shaping its future.
Now, to progress its long-term strategy by focusing on new energies, chemicals, transition materials, diversified industrial businesses, and digital technologies, the oil giant is doubling its overall venture capital funding by pumping an additional $4 billion into its global venture capital arm, Aramco Ventures.
This brings the total capital at Aramco Ventures’ disposal to a staggering $7 billion, marking a significant escalation in the company’s commitment to future-proofing its business by fostering innovation beyond the traditional oil and gas realm.
Ahmad Al Khowaiter, Aramco’s executive vice president of technology and innovation, said: “By injecting an additional $4 billion in funding over the next four years, we intend to provide the financial backing required to take game-changing solutions to the next level.”
The $4 billion infusion brings Aramco’s total venture capital commitment to a hefty $7.5 billion, including the $500 million Wa’ed Ventures fund dedicated to nurturing the Saudi Arabian startup ecosystem.
Aramco Ventures currently manages three funds, each with a specific focus:
The $500 million Digital/Industrial Fund: Targeting technologies deemed strategically crucial to Aramco’s future, such as automation and AI for the oil and gas industry.
The $1 billion Prosperity7 Fund: Backing disruptive ventures across diverse sectors outside of energy, paving the way for diversification and growth beyond fossil fuels.
The $1.5 billion Sustainability Fund: Investing in cleantech solutions to support Aramco’s ambitious net-zero emissions target by 2050.
Aramco’s commitment to innovation also extends beyond its own ventures. Fifty oil and gas companies, including Aramco and UAE’s Adnoc, recently signed the Oil and Gas Decarbonisation Charter at COP28, pledging net-zero emissions by 2050 or sooner.
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