Red Sea Global (RSG), the Saudi developer behind the regenerative tourism destinations Amaala and The Red Sea, has signed a strategic agreement with Bunat Ventures Limited (Bunat VC) to launch a dedicated investment fund focused exclusively on artificial intelligence (AI) startups. The initiative is described as the first AI-only 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, targeting business models fundamentally built on artificial intelligence. Around 25 companies are expected to be incubated and supported over the next three years.
In addition to capital, participating startups—particularly those headquartered in Saudi Arabia—will gain access to Red Sea Global’s advanced destination infrastructure. These assets will serve as a “living lab,” enabling real-world testing and deployment of AI solutions across tourism and hospitality environments, accelerating growth and regional leadership.
Sultan Moraished, Head of Technology and Corporate Excellence at RSG Group, said the partnership reflects RSG’s commitment to technology as a core pillar of sustainability and digital transformation, supporting innovative ideas that can deliver global impact.
The fund will primarily empower 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 promoting talent attraction and knowledge exchange.
Khaled Zainalabedin, CEO and Managing Partner of Bunat VC, said the collaboration will create a strong platform for the next generation of AI entrepreneurs to reshape key sectors and reinforce Saudi Arabia’s position as a global innovation hub.
RSG noted that The Red Sea destination welcomed its first guests in 2023 and now operates 10 luxury resorts supported by Red Sea International Airport, with regular flights from Riyadh, Jeddah, Dubai, and Doha. Shura Island has also recently opened its first international hotels and the 18-hole Shura Links Golf Course, expanding the destination’s tourism offering.
