Red Sea Global, Bunat Ventures launch new AI venture fund
Partnership offers 25 startups infrastructure access for technology pilots
#SaudiArabia #fundin - Saudi regenerative tourism developer Red Sea Global (RSG) has partnered with Abu Dhabi Global Market-regulated venture capital firm Bunat Ventures to launch an AI-focused venture fund. The fund will invest in early-stage and growth-stage startups that are AI-native or use AI as a core business enabler, targeting approximately 25 companies over three years through pre-seed and growth-stage investments. Beyond capital provision, the fund will offer Saudi-based investee companies access to RSG’s operational infrastructure at The Red Sea and AMAALA destinations to pilot and validate technologies, aiming to accelerate startup development into national and regional AI ecosystem champions.
SO WHAT? - The new fund addresses a gap in sector-specific venture capital for AI startups in Saudi Arabia by combining funding with practical testing environments. Access to operational tourism infrastructure could enable startups to demonstrate technology applications in real-world conditions, potentially reducing time to market and increasing investor confidence whilst supporting the Kingdom’s diversification objectives.
Here are some key points about the fund announcement:
Saudi regenerative tourism developer Red Sea Global (RSG) formed a strategic partnership with Abu Dhabi Global Market-regulated venture capital firm Bunat Ventures to establish an AI venture fund focused on Saudi Arabia’s startup ecosystem.
The AI Venture Fund will make pre-seed and growth-stage investments in startups that are either AI-native businesses or leverage artificial intelligence as a fundamental enabler of their business models and operations.
Over a three-year investment period, the fund aims to support approximately 25 AI startups, prioritising Saudi-based entrepreneurs and Saudi-founded global ventures expanding operations into the Kingdom to bolster local innovation.
Portfolio companies based in Saudi Arabia will receive access to Red Sea Global’s world-class infrastructure and operational environment at The Red Sea and AMAALA to pilot and validate their technologies within real-world tourism operations.
The partnership aims to build a platform empowering Saudi AI pioneers who will redefine industries and strengthen the Kingdom’s innovation leadership.
The fund is expected to catalyse the local innovation ecosystem by fostering collaboration between investors, academia and technology partners whilst attracting global talent and promoting knowledge exchange for long-term value creation.
Red Sea Global welcomed its first guests to The Red Sea in 2023 and currently operates 10 resorts plus Red Sea International Airport, with Shura Island opening its first resorts and an 18-hole championship golf course this year.
ZOOM OUT - The Red Sea Global partnership follows similar efforts to create AI startup programmes that engage new ventures with the real world and drive tangible commercial success. Last year, G42 Group company Presight launched an AI startup accelerator, providing expertise, technological resources and networking opportunities to early-stage ventures. The programme and its associated $100 million venture fund connect AI companies with operational environments, enabling startups to demonstrate commercial viability through real-world pilots and contracts.
[Written and edited with the assistance of AI]
Read about Middle East AI startup funds:
Presight opens applications for second cohort (Middle East AI News)
Propeller launches $50 million fund for AI infrastructure (Middle East AI News)
Presight & Shorooq launch $100 million AI fund (Middle East AI News)
Hub71 onboards record 21 AI startups (Middle East AI News)
Egypt gets new deep tech venture studio (Middle East AI News)