Saudi Venture Capital Commits $30 Million To Olive Rock Partners For SME Growth

In a significant move to bolster the small and medium-sized enterprise (SME) sector, Saudi Venture Capital (SVC), a subsidiary of the SME Bank under the National Development Fund, has announced a substantial investment of $30 million into Olive Rock Partners Fund I. This regional private equity fund is known for its strategic focus on mid-market buyouts that are supported by macroeconomic factors, benefit from demographic trends, enjoy geographical advantages, and leverage technological advancements. The investment underscores SVC's commitment to nurturing the SME landscape through its Investment in Funds Program.

The formal subscription agreement was inked by Dr. Nabeel Koshak, CEO and Board Member of SVC, alongside Muhannad Qubbaj, Founding Partner of Olive Rock Partners. The ceremony was graced by the presence of key figures including SVC's Chief Investment Officer, Nora Alsarhan, Vice President of Investments, Haifa Almoqbil, and Olive Rock Partners' Founding Partner, Abdullah Shahin.

Dr. Nabeel Koshak articulated the strategic essence of this investment, highlighting it as a continuation of SVC's robust investment series aimed at developing and sustaining financing avenues for startups and SMEs, particularly in strategic sectors. "The investment in Olive Rock Partners Fund I is part of SVC's Investment in Funds Program, which is a continuation of the company's series of investments and an implementation of its strategy related to developing and sustaining financing for startups and SMEs, especially in strategic sectors," he stated.

On the other side of the partnership, Muhannad Qubbaj expressed gratitude towards SVC for their trust and investment. He emphasized the burgeoning importance of private equity partnerships in Saudi Arabia as a pivotal force driving the growth of the SME sector and enhancing the direct investment landscape. "We thank SVC for the investment and trust extended and are excited about the fruitful partnership that is being forged ahead between both parties. We also would like to emphasize the aligned conviction that private equity partnerships in the Kingdom of Saudi Arabia will increasingly become a key factor in fuelling the growth of the SME space and in fostering the expansion and development in the overall direct investment landscape," Qubbaj remarked.

Established in 2018, SVC operates as an investment arm under the SME Bank, itself part of the National Development Fund. The company is dedicated to invigorating and maintaining financial support for startups and SMEs across various stages—from pre-Seed to pre-IPO—through both fund investments and direct stakes in startups and SMEs. This latest investment into Olive Rock Partners Fund I is a testament to SVC's ongoing strategy to empower the SME sector, which is crucial for economic diversification and sustainable development within Saudi Arabia.

With inputs from SPA