Red Sea Global (RSG), the Saudi developer behind the regenerative tourism destinations Amaala and The Red Sea, has announced a strategic partnership with Bunat Ventures Limited (Bunat VC) to launch a new investment fund dedicated exclusively to artificial intelligence (AI) startups. The initiative is described as the first AI-focused fund of its kind in the Kingdom.
According to RSG, the fund will invest in high-potential AI-native startups from pre-seed through growth stages, with business models fundamentally built on artificial intelligence solutions. The programme is expected to incubate and support around 25 companies over the next three years.
Beyond capital investment, participating startups—particularly those headquartered in Saudi Arabia—will gain access to Red Sea Global’s advanced destination infrastructure. These sites will serve as a “living lab,” allowing companies to test, deploy, and refine their technologies in real-world tourism and hospitality environments, accelerating innovation and commercial readiness.
Sultan Moraished, Head of Technology and Corporate Excellence at RSG Group, said the partnership reflects the group’s commitment to technology as a driver of sustainability and digital transformation. He noted that the fund will support ambitious entrepreneurs while delivering globally relevant technological solutions aligned with the Kingdom’s innovation goals.
The fund will primarily focus on empowering Saudi entrepreneurs while also attracting leading international AI startups to establish regional headquarters in the Kingdom and scale globally from Saudi Arabia. It also aims to strengthen the local innovation ecosystem by connecting investors, academic institutions, and technology partners, while encouraging global talent inflows and knowledge exchange.
Khaled Zainalabedin, CEO and Managing Partner of Bunat VC, said the collaboration will create a strong platform to enable the next generation of AI entrepreneurs to contribute to the transformation of key sectors and reinforce Saudi Arabia’s position as a global innovation hub.
The Red Sea destination welcomed its first guests in 2023 and currently operates 10 luxury resorts, supported by the Red Sea International Airport with regular flights from Riyadh, Jeddah, Dubai, and Doha. RSG added that Shura Island recently marked the opening of its first international hotels and the launch of the 18-hole Shura Links Golf Course, further expanding the destination’s tourism offering.
