Red Sea Global (RSG), the developer behind the Kingdom of Saudi Arabia’s flagship regenerative tourism destinations The Red Sea and AMAALA, has announced a partnership with Bunat Ventures Limited (Bunat VC) to establish a venture capital fund dedicated to artificial intelligence (AI) startups in Saudi Arabia.
The newly launched AI Venture Fund will invest in early-stage and growth-stage companies that are either AI-native or use AI as a core driver of their business models.
Over the next three years, the team says the fund plans to support around 25 startups through pre-seed and growth investments, combining capital with access to operational environments where emerging technologies can be tested and refined at scale.
“At Red Sea Global, we view innovation as a catalyst for a regenerative future. This partnership with Bunat VC reflects our belief that technology is fundamental to sustainability, enabling us to invest in bold ideas that will accelerate the Kingdom’s digital transformation and inspire global progress,” said Sultan Moraished, Group Head of Technology and Corporate Excellence at Red Sea Global.
What You Should Know
The organisers say portfolio companies, particularly those based in Saudi Arabia, will be given the opportunity to pilot and validate their solutions within RSG’s real-world assets, including tourism, hospitality, mobility, sustainability and infrastructure projects, providing a rare bridge between innovation and deployment.
The partnership aligns closely with Saudi Arabia’s Vision 2030 agenda, which prioritises digital transformation, economic diversification and the development of a knowledge-based economy.
AI has been identified as a strategic sector capable of boosting productivity, enabling smarter infrastructure, and positioning the Kingdom as a global technology leader.
By focusing on Saudi-based founders and Saudi-founded global startups seeking to expand into the Kingdom, the fund aims to strengthen domestic innovation while attracting international expertise and investment into the local ecosystem.
Building National and Regional AI Champions
Bunat VC, which focuses on technology and innovation-driven investments, sees the partnership as a platform to nurture Saudi Arabia’s next generation of AI leaders.
“Our collaboration with Red Sea Global brings together visionary development and agile venture capital. Together, we are building a platform to empower the next generation of Saudi AI pioneers who will redefine industries, shape communities, and strengthen Saudi Arabia’s leadership in the global innovation arena,” Khaled Zainalabedin, CEO and Managing Partner at Bunat VC, added.
Beyond funding, the programme will provide founders with mentorship, industry access, technical validation opportunities and pathways to scale across the Middle East and beyond, helping startups move from promising concepts to sustainable, high-impact businesses.
Leveraging RSG’s Expanding Footprint
Red Sea Global offers a unique testing ground for emerging technologies. Since welcoming its first guests in 2023, RSG now operates 10 resorts alongside Red Sea International Airport (RSI), which receives regular flights from Riyadh, Jeddah, Dubai and Doha.
This year marks the opening of the first resorts on Shura Island, the central hub of The Red Sea destination, as well as Shura Links, an 18-hole championship golf course.
These assets provide a live environment for AI applications across logistics, energy efficiency, guest services, environmental monitoring, smart mobility and operational optimisation, areas where technology can directly support both sustainability and profitability.
As Saudi Arabia continues to reposition itself from an oil-dependent economy to a diversified, technology-driven one, experts say initiatives such as the AI Venture Fund signal a growing shift from infrastructure-first development to innovation-led growth.
By linking venture capital with real-world deployment opportunities, experts say the RSG–Bunat VC partnership aims not only to finance startups, but to help create scalable, globally competitive companies rooted in the Kingdom, reinforcing Saudi Arabia’s ambition to become a regional and international hub for artificial intelligence and advanced technology.
Talking Points
It is significant that Red Sea Global is not just investing capital, but also opening up its real-world operations as a testing ground for AI startups. This moves the fund beyond a financial vehicle into a practical innovation platform where ideas can be validated at scale.
By allowing startups to pilot within tourism, infrastructure, sustainability and mobility projects, the partnership directly reduces the gap between experimentation and deployment, one of the biggest challenges for emerging AI companies.
At Techparley, we see this model as a strong signal that Saudi Arabia is shifting from simply funding innovation to actively enabling it. It reflects a more mature ecosystem where corporates, investors and founders collaborate to build viable, market-ready technologies.
The focus on Saudi-based founders and Saudi-founded global startups expanding into the Kingdom also strengthens local capacity, ensuring that talent, jobs and intellectual property are anchored within the domestic economy.
However, the long-term impact will depend on execution. The quality of founder support, clarity of the fund’s selection criteria, and the ease of accessing RSG’s infrastructure will determine whether startups truly benefit beyond branding and capital.
As the fund begins deploying, there is an opportunity for Red Sea Global and Bunat VC to set a benchmark for how corporate-backed venture funds operate in the region. If managed well, this initiative could become a catalyst for a new generation of AI companies shaping industries not just in Saudi Arabia, but across the wider Middle East and emerging markets.
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