Red Sea Global, Bunat VC launch fund to empower AI innovations

Red Sea Global, the Saudi developer behind regenerative tourism destinations Amaala and The Red Sea, has announced the signing of a strategic deal with Bunat Ventures Limited (Bunat VC) for the launch of an investment fund - a first of its kind in the kingdom - dedicated exclusively to supporting and empowering startups specialized in artificial-intelligence (AI) technologies.

The new fund will focus on investing in high-potential startups, from pre-seed stages through growth phases, whose business models are fundamentally built on AI solutions, said RSG in a statement.

The fund aims to incubate and support around 25 promising companies over the next three years. In addition to financial backing, beneficiary companies - particularly those headquartered in the kingdom - will gain a unique competitive advantage through access to the advanced infrastructure across Red Sea Global destinations, serving as a "living lab" to test and deploy their technologies in real-world environments. 

This will accelerate growth and strengthen leadership in the tourism and hospitality sectors locally and regionally.

On the partnership, Sultan Moraished, the head of technology and corporate excellence at RSG Group, said: "Our partnership with Bunat VC underscores our firm commitment to leveraging technology as a core pillar of sustainability. It enables us to invest in bright minds and ambitious ideas that support the Kingdom's digital transformation journey and deliver inspiring technological solutions to the world."

The fund primarily seeks to empower Saudi entrepreneurs, while also attracting leading global startups to establish headquarters and expand from the kingdom to global markets. 

It further aims to energise the local innovation ecosystem by building bridges between investors, academic institutions, and technology partners, in addition to attracting global talent and facilitating knowledge exchange to ensure sustainable growth and long-term value creation.

Khaled Zainalabedin, the CEO and managing partner of Bunat VC, affirmed that the partnership will build a strong platform that empowers the next generation of AI entrepreneurs to actively contribute to reshaping vital sectors and to cement the Kingdom's position as a leading hub on the global innovation map.

The Red Sea destination welcomed its first guests in 2023 and currently operates a portfolio of 10 luxury resorts, served by the Red Sea International Airport, which receives regular flights from Riyadh, Jeddah, Dubai, and Doha, said RSG in its statement. 

Recently, Shura Island - the beating heart of the destination - witnessed the official opening of its first international hotels, alongside the inauguration of the 18-hole Shura Links Golf Course, offering a comprehensive and unprecedented tourism experience, it added.