Saudi Arabia to get AI-focused venture fund backed by Red Sea Global

Saudi Arabia’s Red Sea Global (RSG) has announced a strategic partnership with Bunat Ventures Limited (Bunat VC) to launch a first-of-its-kind venture fund focused on artificial intelligence (AI)-driven startups in the Kingdom.

The initiative is designed to accelerate the growth of AI innovation while strengthening the Kingdom’s digital economy and entrepreneurial ecosystem.

The AI Venture Fund will invest in early- and growth-stage startups that are either AI-native or leverage AI as a core enabler of their business models.

Over the next three years, the fund aims to support approximately 25 startups through a mix of pre-seed and growth-stage investments.

Beyond capital, investee companies—particularly those based in Saudi Arabia—will gain access to world-class infrastructure and a state-of-the-art environment to pilot and validate their technologies within RSG’s real-world operations.

Red Sea Global announces AI fund

The partnership is intended to accelerate the development of investee companies into national and regional champions within the AI ecosystem.

With a strong focus on Saudi-based entrepreneurs and Saudi-founded global ventures expanding into the Kingdom, the fund seeks to unlock new pathways for innovation, job creation and digital excellence.

It is also expected to act as a catalyst for the local innovation ecosystem by fostering collaboration between investors, academia and technology partners, while attracting global talent and promoting long-term knowledge exchange.

Khaled Zainalabedin, CEO and Managing Partner at Bunat VC, said: “Our collaboration with Red Sea Global brings together visionary development and agile venture capital. Together, we are building a platform to empower the next generation of Saudi AI pioneers who will redefine industries, shape communities, and strengthen Saudi Arabia’s leadership in the global innovation arena.”

RSG welcomed its first guests to The Red Sea in 2023 and currently operates 10 resorts, alongside Red Sea International Airport (RSI), which receives regular flights from Riyadh, Jeddah, Dubai and Doha.

This year, Shura Island, the heart of The Red Sea destination, is opening its first resorts, as well as Shura Links, an 18-hole championship golf course, further expanding the developer’s operational footprint and providing a live environment for piloting advanced technologies.