Saudi SIC Expands Alternative Investments to Reach $425 Million
The Saudi Industrial Development Fund Investment Co., or SIC, plans to invest in multiple alternative financing instruments and venture capital funds to reach a total of approximately SR1.6 billion ($425 million) by the end of this year.
Riyadh: The Saudi Industrial Development Fund Investment Co. (SIC), a subsidiary of the Saudi Industrial Development Fund (SIDF), is expanding its presence in alternative financing instruments and venture capital investments, with CEO Fahad Al-Naeem expecting total investments to reach approximately SR1.6 billion ($425 million) by year-end.
In an interview with Asharq Bloomberg, Al-Naeem explained that SIC plans to contribute to two or three additional funds before the end of this year, including an infrastructure fund in partnership with a foreign investor and funds specializing in growth financing and direct investments in industrial and technology sectors.SIC's First Venture Capital InvestmentThis move follows the May 13 announcement from SIC of its first venture capital investment as a strategic investor in Khwarizmi Ventures 2.
This investment aims to support emerging technology companies linked to industry, logistics, and supply chains.Khwarizmi Ventures 2 represents SIC's first direct foray into the venture capital sector, part of a strategy to link traditional industrial financing with the innovation ecosystem and modern technologies, particularly those related to artificial intelligence, automation, and the Fourth Industrial Revolution.
According to Al-Naeem, SIC monitored the performance of Khwarizmi Ventures 1 before making the investment decision to ensure its viability.The CEO also noted that the Saudi market needs to diversify its financing instruments, highlighting that the current funding gap presents an attractive opportunity for investment institutions and asset managers.
As of now, SIC has exceeded SR1 billion in investment commitments, with more than SR300 million already disbursed.
This new investment represents the company’s 11th investment and its first in a venture capital fund targeting the private sector.Abdulaziz Al-Turki, managing partner at Khwarizmi Ventures, stated that the fund successfully closed its first funding round at $75 million and aims to exceed $100 million by the final close in the second half of this year.
The fund plans to invest in 20 to 30 startups over a 10-year period, injecting $1 million to $5 million in seed and early-stage funding rounds.Khwarizmi Ventures is a Saudi-based venture capital firm founded in 2018 that invests in early-stage startups across the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) region.
The firm manages a portfolio of 35 companies, focusing on opportunities within the GCC and MENA region.
In an interview with Asharq Bloomberg, Al-Naeem explained that SIC plans to contribute to two or three additional funds before the end of this year, including an infrastructure fund in partnership with a foreign investor and funds specializing in growth financing and direct investments in industrial and technology sectors.SIC's First Venture Capital InvestmentThis move follows the May 13 announcement from SIC of its first venture capital investment as a strategic investor in Khwarizmi Ventures 2.
This investment aims to support emerging technology companies linked to industry, logistics, and supply chains.Khwarizmi Ventures 2 represents SIC's first direct foray into the venture capital sector, part of a strategy to link traditional industrial financing with the innovation ecosystem and modern technologies, particularly those related to artificial intelligence, automation, and the Fourth Industrial Revolution.
According to Al-Naeem, SIC monitored the performance of Khwarizmi Ventures 1 before making the investment decision to ensure its viability.The CEO also noted that the Saudi market needs to diversify its financing instruments, highlighting that the current funding gap presents an attractive opportunity for investment institutions and asset managers.
As of now, SIC has exceeded SR1 billion in investment commitments, with more than SR300 million already disbursed.
This new investment represents the company’s 11th investment and its first in a venture capital fund targeting the private sector.Abdulaziz Al-Turki, managing partner at Khwarizmi Ventures, stated that the fund successfully closed its first funding round at $75 million and aims to exceed $100 million by the final close in the second half of this year.
The fund plans to invest in 20 to 30 startups over a 10-year period, injecting $1 million to $5 million in seed and early-stage funding rounds.Khwarizmi Ventures is a Saudi-based venture capital firm founded in 2018 that invests in early-stage startups across the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) region.
The firm manages a portfolio of 35 companies, focusing on opportunities within the GCC and MENA region.
