Saudi Basic Industries Corp. (SABIC) has announced the launch of a new global corporate venture capital arm, SABIC Ventures, in the Netherlands, with the primary goal of seeking out innovative technologies and businesses consistent with the company's global strategy.
SABIC Ventures aims to build up a portfolio of technology options for the company's future businesses. It will do this by investing directly in seed-stage, early-stage and late-stage companies. The new organization will lead investment, co-lead and invest alongside venture capitalists.
Commenting on the launch of the organization, Mohamed Al-Mady, SABIC Vice Chairman and CEO, said that SABIC Ventures has been developed as an investment vehicle to accomplish profitable growth. "SABIC aspires to be the preferred leader in chemicals. We will accomplish this through organic growth by investing in new assets and expanding current assets, mergers and acquisitions in targeted areas, and new business creation. Venturing provides growth opportunities for new businesses."
Among the areas designated for investments are advanced materials and composites, alternative feedstocks for chemicals and materials, and alternative energy and clean technology. At the same time, the organization will be constantly exploring new areas of interest.
The targeted regions for sourcing venturing investments are the US, Europe and Asia. "The organization will have a global reach. We are building a global organization with deal flow and investment management support from all over the world," Al-Mady said.