Arab News, Thu, Mar 14, 2024 | Ramadan 4, 1445
Saudi tech sector to see $100m investment windfall thanks to Gulf Capital deal with innovation authority
Saudi Arabia:
Saudi Arabia’s technology sector is set to benefit from $100 million of
investment thanks to an agreement between private equity firm Gulf Capital and
the Kingdom’s Research Development and Innovation Authority.
This amount will be deployed over the next five
years in an effort to boost the industry, according to a press release.
The letter of intent was signed in Riyadh by Rami
Niazi, vice governor of strategy at the RDIA, and Karim El-Solh, co-founder and
CEO of Gulf Capital.
The equity firm will work closely with the
authority to enhance, support, and fund the growth of Saudi firms
pushing technological innovation in healthcare, health tech, and fintech, as
well as energy and renewables.
Both parties will cooperate to attract and
facilitate the market entry of international innovation companies into the Saudi
market.
El-Solh said: “We are delighted to work with the
RDIA on this ambitious investment program and to increase foreign direct
investments into the Kingdom. Saudi Arabia is an amazing global growth story and
has been moving at remarkable speed to achieve its Vision 2030 and, as a result,
all of its economic indicators have been on an upward trend.”
The CEO went on to highlight that Gulf Capital’s
role as one of the leading investors in the Kingdom and as a catalyst of growth
for private companies is aligned with this vision, adding: “In partnership with
the RDIA, we look forward to increasing and accelerating our investments into
high growth companies in the Kingdom.”
Gulf Capital has an 18-year track record of
investing in Saudi Arabia and has deployed over SR2.2 billion ($586.59 million)
in investments in an extensive portfolio of companies. Among its largest
investments is Geidea, a payment services provider.
Mohammed Al-Otaibi, the general supervisor at the
RDIA, said: “Through this strategic partnership, we seek to support and enhance
the professional and technical growth of local companies and to facilitate the
establishment of international companies within the Kingdom to achieve national
priorities for the research, development, and innovation sector and for the
Kingdom to become a global centre for innovation.”