ICD, KAUST support Saudi venture capital industry

The King Abdullah University of Science and Technology (KAUST) and the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group (IDB), in collaboration with Anfaal Capital, have agreed to establish a Saudi-focused venture capital fund.
The joint initiative aims to promote and foster the development of the domestic venture capital market in Saudi Arabia. The initiative leverages KAUST’s expertise in new technologies, as well as the ICD SME Program’s experience in the development and management of investment vehicles.
The fund will provide venture capital (VC) funding for high-tech start-ups located in Saudi Arabia and lead early-stage financing rounds attracting local investors and international venture capitalists.
The fund will search for unique and innovative venture capital opportunities and provide the “smart and hands-on capital” needed to start and then sustain these companies.
“Launching this venture fund exemplifies KAUST’s long-term investment to support technology startups within the nation,” said President Jean-Lou Chameau.
Khaled Al-Aboodi, CEO of the ICD, commented: “This agreement will greatly enhance the development of the alternative investment market in Saudi Arabia, and facilitate the economic development of a robust private sector. As such, it perfectly suits the long-term goals of the ICD, and we are happy to be working with such an illustrious institution toward the achievement of this worthy cause.”
Ahmed Muzni bin Mohamed, CEO of Anfaal, said: “Venture Capital has been proven to be the most effective tool to identify new technologies, to exploit innovation and to fund and launch new businesses. It is said that in the Kingdom, small and medium businesses run by entrepreneurs contribute less than 20 percent of the domestic economy. Technopreneurs’ share of contribution is likely to be much smaller but with the largest growth prospect.”