Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) has earmarked an additional $4 billion to its global venture capital (VC) arm, Aramco Ventures, marking more than double the capital allotted to the corporate venture capital firm.

The new funding has raised Aramco’s total investment allocation to the VC arm from $3 billion to $7 billion, which will endorse the oil giant’s long-term strategy of investing in business development across a variety of industries, according to an official statement.

Meanwhile, Aramco’s current overall venture capital allocation has grown to $7.50 billion, including the $500 million venture capital fund Wa’ed Ventures which focuses on the Saudi startup ecosystem.

The additional investment will also help advance Aramco’s focus on the fields of new energies, chemicals and transition materials, diversified industrial businesses, and digital technologies.

Aramco Executive Vice President of Technology and Innovation, Ahmad Al Khowaiter, said: “Innovation is key to addressing some of the fundamental challenges facing the world today, including the energy transition.”

Al Khowaiter added: “Through Aramco Ventures, we aim to support pioneers with big ambitions, and ultimately help bring their ideas to life.”

The official concluded: “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. This will provide crucial impetus to businesses at various stages of development around the world, while also contributing to Aramco’s own long-term objectives.”

Aramco Ventures managed three funds before the new capital allocation, namely a Digital/Industrial Fund worth $500 million that invested in technologies of strategic importance to Aramco; the Prosperity7 Fund with $1 billion allotted for disruptive technology ventures beyond the energy sector; and the Sustainability Fund of $1.50 billion investing in startups with the potential to support the company’s ambition towards green economy across its wholly-owned and operated assets by 2050.

During the first nine months (9M) of 2023, the Saudi oil giant generated net profits of SAR 354.54 billion while its revenues hit SAR 1.24 trillion.