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Saudi ‘Jada’ Plans Attractive Investment Funds in NEOM

Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
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Saudi ‘Jada’ Plans Attractive Investment Funds in NEOM

Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)
Part of the ‘Catalyze Saudi’ initiative activities in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s Jada Fund of Funds plans launching funds to attract investments in favor of NEOM, revealed Jada CEO Adel Al-Ateeq.

“We are looking to increase the volume of Jada’s investment by more than SAR 4 billion ($1.06 billion),” Al-Ateeq told Asharq Al-Awsat.

“Since the beginning of Jada’s launch, we have invested in more than 20 investment funds,” said Al-Ateeq.

“The volume of investment in these funds exceeded SAR2 billion ($533.3 million), distributed among a number of venture capital and private equity funds in the Kingdom,” revealed the CEO.

Al-Ateeq stressed that Jada will continue to invest in venture capital and private equity in the Kingdom. He reaffirmed that the fund would carry on with the momentum it started with three years ago.

He pointed out that Jada’s capital initially amounted to SAR 4 billion ($1.06 billion) but hoped to increase its value in the future.

“We invested SAR 2 billion in 3 years... and I expect to continue at the same level during the next three years... We invested in 20 funds in several companies,” said Al-Ateeq, adding that Jada has capitalized in 350 local and regional companies.

“NEOM is still in the process of being established, and it is working to establish many targeted projects... Therefore, we are looking forward to launching investment funds that will give NEOM a share of its investments when its projects are launched,” revealed Al-Ateeq.

Saudi Arabia’s Ministry of Investment (MISA) and Jada had formed a partnership to bolster the Kingdom’s start-up and innovation sector and support economic diversification under the ‘Catalyze Saudi’ initiative.

Jada, owned by the Public Investment fund (PIF), provides funding to start-ups in the Kingdom through commercially sustainable investments in venture capital and private equity funds.

MISA and Jada aim to connect leaders from government agencies, start-up entrepreneurs, investors and leading family business representatives from the Kingdom to participate in roundtable discussions and reinforce the private sector’s impact on the local economy.

The ‘Catalyze Saudi’ initiative is in line with the Kingdom’s Vision 2030 which aims to raise small and medium sized enterprises’ (SMEs) contribution to GDP from 21% to 35% by 2030.

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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.