The Kingdom puts $1.07 billion into SMEs.

The Saudi Arabia Sovereign Wealth Fund has launched its own fund of funds firm. The Public Investment Fund will put 4 billion riyal – or $1.07 billion – forward to support small- and mid-sized businesses.

The PIR held a ceremony Tuesday to formally support the launch of the new fund of funds. During the ceremony, officials announced that Jada will invest in Khobar-based Raed Ventures and Vision Ventures.

Further, the two are very active Saudi venture capital companies.

Saudi Arabia Sovereign Wealth Fund and Jada

The fund called Jada “supports Saudi’s diversification efforts as the private sector increases its share of GDP.”

Further, the country aims to diversify away from oil revenues. The statement continues: “With a capital of SAR 4 billion, the company will serve as a catalyst for SME investment and provide new job opportunities.”

Meanwhile, total investments will create 2,600 new jobs and boost the nation’s GDP by roughly 400 million riyals by the end of 2020. The PIR also projects those figures will rise to 58,000 new jobs and 8.6 billion riyals to national GDP by the end of 2027. These figures come from a statement in 2017.

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