The Saudi Arabian General Investment Authority (SAGIA) and Intel Capital, Intel's venture investment program, yesterday announced a cooperative effort to establish an independent $100 million venture capital investment company (fund) to invest in technology companies located in, or having a connection with, Saudi Arabia. The fund will invest in growing technology companies developing innovative value added services and software and employing new business models. The investments will focus on early and growth stage companies, emphasizing entrepreneurship and continued growth of the ICT industry in the region. At a ceremony in Riyadh on Tuesday, Intel chairman, Dr. Craig Barrett, and Governor Amr A. Al Dabbagh of SAGIA, signed a Memorandum of Understanding (MOU), outlining Intel's and SAGIA's intention to work together to help establish this new Saudi fund and help grow established ones. Intel will serve as a consultant to this fund and will also have the option of co-investing in all the investments made by the new fund, according to a report published today by Arab News. Separately, Intel announced previously its own $50 million fund to invest in leading technology companies in the region. SAGIA played a central role in helping establish the focus of the fund and will act as a liaison to the Saudi Arabian government with respect to foreign investments that such a focus is bound to attract. Although neither SAGIA nor Intel Capital will directly invest in the fund, they are committed to working with it on an ongoing basis. --MORE 1039 Local Time 0739 GMT
