AI Fund Saudi Arabia: Red Sea International And Bunat VC Launch Supportive AI Startup Fund

Red Sea International has entered a strategic partnership with Bunat Ventures Limited (Bunat VC) to create an AI-focused investment fund in Saudi Arabia. The fund is described as the first in the Kingdom dedicated solely to artificial-intelligence technologies and aims to back startups whose main operations rely on AI-driven business models.

The new AI investment vehicle will target companies from pre-seed through later growth stages, offering both capital and operational support. Red Sea International plans for the fund to incubate and assist about 25 startups within three years, with a strong focus on ventures based in Saudi Arabia and aligned with national digital goals.

Startups supported by the AI investment fund are expected to benefit from access to Red Sea International’s destinations, which will function as a "living lab" for real-world testing and deployment. This practical environment is designed to help companies refine products, accelerate commercialisation, and strengthen the use of AI in tourism and hospitality sectors across local and regional markets.

Commenting on the partnership, Red Sea Global Group head of technology and corporate excellence Sultan Moraished said, "Our partnership with Bunat VC underscores our firm commitment to leveraging technology as a core pillar of sustainability. It enables us to invest in bright minds and ambitious ideas that support the Kingdom's digital transformation journey and deliver inspiring technological solutions to the world."

The fund’s strategy places Saudi entrepreneurs at the centre while remaining open to international participants. It seeks to draw leading global startups to establish regional headquarters in the Kingdom and expand outward to international markets. The initiative also intends to link investors, universities, and technology partners, while attracting specialised talent and encouraging knowledge transfer to support long-term value.

Bunat VC chief executive and managing partner Khaled Zainalabedin stated that the collaboration would provide a solid platform for AI founders. According to Zainalabedin, the partnership will help the next generation of AI entrepreneurs influence key sectors and support Saudi Arabia’s ambition to be viewed as a major global innovation centre.

The AI investment fund is anchored in a destination that has already reached important operational milestones. The Red Sea destination welcomed its first guests in 2023 and now manages 10 luxury resorts. These properties are connected by Red Sea International Airport, which runs scheduled services linking the project with Riyadh, Jeddah, Dubai, and Doha.

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Development on Shura Island, the core area of the destination, has advanced with the opening of its first international hotels. The launch of the 18-hole Shura Links Golf Course has added a new recreational facility, contributing to a broader tourism offer that supports the wider strategy to attract regional and international visitors.

The AI investment fund, combined with Red Sea International’s growing tourism assets, is intended to link technological innovation with real-world application. By supporting around 25 AI-focused startups over three years and offering access to operational destinations, the partnership aims to strengthen Saudi Arabia’s position in digital innovation while reinforcing growth in tourism and hospitality.

With inputs from SPA