Red Sea Global (RSG) has partnered with Bunat Ventures to launch a pioneering venture fund dedicated to artificial intelligence startups in Saudi Arabia. This strategic initiative aims to empower the next generation of innovators by investing in early- and growth-stage companies leveraging AI. The fund is set to accelerate the Kingdom's digital transformation and bolster its position within the global technology landscape.
A Strategic Push for AI Innovation
The newly established AI Venture Fund will focus its investments on companies that are either AI-native or use artificial intelligence as a core component of their business model. Over the next three years, the fund plans to support approximately 25 promising startups through both pre-seed and growth-stage funding rounds. This targeted approach is designed to cultivate a robust portfolio of technology-driven enterprises within the Kingdom.
More Than Just Capital
Beyond providing financial backing, the partnership offers a unique advantage by granting investee companies access to Red Sea Global's extensive infrastructure. Startups will have the opportunity to pilot and validate their technologies within a real-world operational environment, effectively using the destination as a living laboratory. This hands-on support system is crucial for accelerating the development of these ventures into national and regional champions.
Fostering a National Tech Ecosystem
The initiative places a strong emphasis on nurturing local talent by targeting Saudi-based entrepreneurs and Saudi-founded global ventures expanding into the Kingdom. The fund is expected to act as a catalyst for the local innovation ecosystem, creating new jobs and fostering collaboration between investors and academia. Its ultimate goal is to attract global talent and promote knowledge exchange for long-term sustainable growth.
Leadership Perspectives on the Partnership
Sultan Moraished of Red Sea Global highlighted that the partnership reflects a core belief in technology as a fundamental driver of sustainability and progress. He emphasized that this investment in bold ideas will accelerate the Kingdom’s digital transformation. Khaled Zainalabedin of Bunat VC added that the collaboration combines visionary development with agile venture capital to empower Saudi Arabia's next generation of AI pioneers.
Red Sea Global's Expanding Vision
This venture aligns with Red Sea Global's broader mission as a leader in regenerative tourism, having already welcomed its first guests in 2023. The developer currently operates ten resorts and the Red Sea International Airport, with regular flights connecting major regional hubs. Further expansion is underway, with the first resorts on Shura Island and a championship golf course set to open this year.
The launch of the AI Venture Fund by Red Sea Global and Bunat Ventures represents a significant milestone in Saudi Arabia's economic diversification efforts. By merging advanced technology with sustainable tourism development, the initiative is poised to cultivate a vibrant ecosystem for AI innovation. This strategic investment will not only shape a smarter future for the region but also solidify the Kingdom's role as a key player in the global technology arena.