The Kingdom of Saudi Arabia’s Public Investment Fund (PIF) has launched a $1.07 billion fund of funds company, according to media reports.
Saudi Arabia’s new Jada fund of funds is is tasked to invest in venture capital and private equity funds, in addition to SMEs including startups. The plan to establish Saudi Arabia’s Jada fund of funds was first announced in 2017.
The Saudi Arabian Jada funds of funds was launched in Riyadh this week. PIF said in a statement, “Jada supports Saudi’s diversification efforts as the private sector increases its share of GDP. With a capital of SAR 4 billion, the company will serve as a catalyst for SME investment and provide new job opportunities.”
In 2017, PIF said that it expects investments to create 2,600 jobs and contribute SR400 million to gross domestic product by 2020 end. In fact, those figures are anticipated to increase to 58,000 jobs and SR8.6 billion to GDP by 2027 end.
According to media reports, Jada is the first of its kind Saudi Arabian fund to promote SME growth. The Saudi Arabian fund of funds is looking for lucrative returns in order to increase fiscal sustainability. This is in line with the Kingdom’s plan to empower SMEs.
Last year, the Saudi Arabian government launched Saudi Venture Capital Company, which is a SR2.8 billion initiative to invest in the Kingdom’s startups and venture capital funds.
According to Sovereign Wealth Fund Institute, Jada has made its first commitment to invest in funds managed by Dammam-based Raed Ventures and Vision Ventures. RAED Ventures is a corporate venture capital firm established by established by Almajdouie.