Saudi Aramco’s Wa’ed triples loans to local start-ups in 2020

Wa’ed, the entrepreneurship arm of Saudi Aramco, tripled the amount of money it loaned to Saudi-based start-ups in 2020, and injected significantly more money into new businesses through venture capital (VC) investments, as it began a multi-year effort to raise support for Saudi entrepreneurs.

The Dhahran-based venture also increased loan disbursements to small and medium-sized enterprises (SMEs) in Saudi Arabia to SAR 31 million in 2020, from SAR 10 million in 2019.

In VC investments, Wa’ed deployed SAR 43 million, up 34%, from SAR 32 million in the previous year, it said in a statement.

The number of loans financed rose to 12 in 2020 from four in 2019, and VC deals executed increased from seven to nine over the same period.

It is planning a series of new initiatives to support development of the Kingdom’s VC ecosystem in 2021, which is increasingly attracting foreign innovators who are interested in localizing their technologies in the local market.

The newest innovation in 2021 is expected to be Wa’ed’s new Venture Builder, a one-of-a-kind breeding ground for promising start-ups in Saudi Arabia, which provides entrepreneurs and start-ups with essential back-office services such as marketing, new business development and networking, allowing innovators to get their companies off the ground.

The Venture Builder will allow Wa’ed to specifically nurture start-up businesses that target existing market needs and gaps in Saudi Arabia, which are critical to the Kingdom’s economic future and diversification.

“Overall, Wa’ed plans to double the number of loan and VC deals in next three years by entering new collaborations, better leveraging Saudi Aramco’s own business ecosystems, and actively reaching out to investors,” Wassim Basrawi, Wa’ed’s Managing Director, said.