Riyadh-based technology solutions provider Al-Moammar Information Systems Company (MIS) and financial services firm Saudi Fransi Capital have launched a SR150m ($40m) venture capital fund.

The fund will focus on investments in early-stage technology startups in the kingdom, specifically in sectors such as financial technology (fintech), consumer services, security, software and healthcare technology (medtech).

MIS plans to set up either an internal division or subsidiary to serve as the investment adviser and innovation partner. Meanwhile Saudi Fransi will establish and manage the fund. 

Steady diversification

Saudi Arabia has been aiming to diversify its economy away from oil dependence. Technology is regarded as one of the most important pillars of achieving this goal.

Venture funding in the kingdom grew by 270 per cent in 2021, while the number of deals increased by 54 per cent, according to startup data platform Magnitt. 

At the end of 2021, Saudi Arabia accounted for 21 per cent of total venture capital investment in the Middle East and North Africa (Mena) region, up from its 15 per cent share in 2020.

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