In a strategic move reflecting its commitment to fostering innovation and diversification, Aramco, an integrated energy and chemical major, has announced a substantial increase in funding for its global venture capital arm, Aramco Ventures.

The company is allocating an additional $4bn to Aramco Ventures, effectively doubling its capital from $3bn to a total of $7bn.

This latest infusion of capital is set to elevate Aramco’s overall venture capital commitment to $7.5bn, inclusive of the existing $500m Wa’ed Ventures fund. Focused on supporting the startup ecosystem in the Kingdom of Saudi Arabia, Wa’ed Ventures complements Aramco’s broader venture capital initiatives.

The decision underscores the growing importance of Aramco’s venture capital program in driving the development of disruptive technologies. The increased funding not only provides diversification opportunities for Aramco but also positions the company for potential collaborations with innovative startups.

This strategic move aligns with Aramco’s long-term vision, emphasizing key areas such as new energies, chemicals, transition materials, diversified industrial businesses, and digital technologies. By investing in disruptive ventures, Aramco aims to stay at the forefront of technological advancements and contribute to its overarching strategy.

Aramco technology and Innovation executive vice president Ahmad Al Khowaiter said: “Innovation is key to addressing some of the fundamental challenges facing the world today, including the energy transition.

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

“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.”

Prior to this capital infusion, Aramco Ventures managed three distinct funds. The Digital/Industrial Fund, valued at $500m, focused on investing in technologies deemed strategically important to Aramco.

The Prosperity7 Fund, with a capital of $1bn, sought opportunities in disruptive technology ventures beyond the traditional energy sector. The Sustainability Fund, standing at $1.5bn, concentrated on investing in startups aligned with Aramco’s goal to achieve net-zero carbon emissions across its wholly-owned and operated assets by 2050.