Home » Economy » Saudi Arabia’s PIF-Backed JADA to Invest $250 Million in Aliph Capital for SME Boost
Saudi Arabia’s PIF-Backed JADA to Invest $250 Million in Aliph Capital for SME Boost
Saudi Arabia’s PIF-Backed JADA to Invest $250 Millions in Aliph Capital for SME Boost

Saudi Arabia’s PIF subsidiary JADA, which was launched in 2021 with a $1 Billion fund to support Saudi SMEs through Private Equity and Venture Capital funds, has just invested $250 Million in GCC-based Aliph Capital to help support SMEs in the kingdom with capital, talent, and technology.

This collaboration targets the growth and development of small and medium-sized enterprises (SMEs) in the region.

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An Alliance to Bolster SMEs

Image Credit JADA

Bandr Alhomaly, the Chief Executive Officer (CEO) of Jada Fund of Funds, disclosed the partnership’s main objective, which is to strengthen SMEs, a crucial component of Saudi Arabia’s economic construct.

“Our alliance with Aliph Capital reflects a joint objective: to bolster SMEs, an integral component of Saudi Arabia’s economic framework, and to equip them with capital, talent, and technology,” said Alhomaly.

Investing in Aliph Capital’s Aliph Fund I, Jada’s commitment emphasizes the importance of private equity and venture capital in supporting SME growth and development in Saudi Arabia.

Aliph Capital’s Strategic Focus

Founded by Huda Al-Lawati, Aliph Capital is an alternative investment manager based in the Abu Dhabi Global Market (ADGM). The firm focuses on value creation and digital transformation and targets high-quality mid-sized companies across the Gulf Cooperation Council (GCC).

Aliph Capital’s maiden fund, Aliph Fund I, has a target of $250 million and is backed by ADQ, an Abu Dhabi holding company. The fund received a significant $125 million investment from ADQ in October 2022.

“I am grateful and honored that Jada has invested significantly in Aliph Fund I. The potential of SMEs within the Kingdom of Saudi Arabia is vast,” said Huda Al-Lawati, Founder and CEO of Aliph Capital.

A Commitment to Economic Diversification

The partnership between Jada and Aliph Capital underscores their shared commitment to Saudi Arabia’s economic diversification. By investing in and guiding portfolio companies, they aim to contribute to the Kingdom’s economic diversification objectives.

The investment also aligns with Saudi Arabia’s Vision 2030, a strategic framework that includes the development of a thriving private equity and venture capital ecosystem.

The Promising Landscape of Saudi SMEs

Saudi Arabia led the Middle East and North Africa region in attracting the highest number and value of venture capital investment for its start-ups in the first quarter of 2023. 

Saudi start-ups attracted $359 million out of the total $818 million capital for the Mena region in the first three months to March, according to a report by start-up platform Magnitt.

The Kingdom’s SME sector is critical to its economic diversification strategy. By equipping them with capital, talent, and technology, Jada and Aliph Capital aim to unlock their vast potential.

Looking Ahead

The Jada-Aliph Capital partnership is another step towards the growth and development of the SME sector in Saudi Arabia. Their shared commitment to strategic, sustainable investments through private equity and venture capital promises to yield significant dividends in the long run.

This partnership is an example of the positive impact strong managers can have on the broader economic landscape by leveraging their expertise in asset selection and guiding portfolio companies.

As Saudi Arabia continues to diversify its economy and invest in its SME sector, this collaboration will undoubtedly play a crucial role in realizing its vast potential.

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