PIF launches $1bn start-up fund of funds

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) has launched a $1 billion fund of funds designed to provide capital for private equity and venture capital funds focused on small businesses (SMEs) in the region.

The new fund, called “Jada”, will be worth $1.07 billion and is the latest investment vehicle to be launched in support of the SME sector.

“Jada is the first instrument of its kind in the kingdom,” stated the PIF. “It is a catalyst for small and medium enterprises seeking to secure rewarding incomes, to ensure financial sustainability and support the Kingdom’s priorities in terms of supporting SMEs.”

The Saudi government has already called for financial institutions in the kingdom to allocated 20% of all funding to SMEs. And in 2018 it also launched Saudi Venture Capital Company, a $750 million initiative to invest in local start-ups and venture capital firms focused on the sector.

Meanwhile in November, UAE fund manager, Mubadala, launched its own $250 million investment vehicle aimed at regional funds and start-ups.

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