Saudi Basic Industries Corp (SABIC) has set up a new venture capital arm to invest in innovative technology and companies as it seeks to expand beyond petrochemicals, which have made it one of the world's largest chemicals companies, as per Reuters. The new firm, SABIC Ventures, will be based in the Netherlands and will invest in technologies and new business. It will be funded through a so-called innovation fund that will be managed by the company.
"SABIC Ventures aims to build up a portfolio of technology options for the company's future businesses," the Saudi chemicals giant said in a statement. "It will do this by investing directly both in seed stage, early stage and late stage companies. The new organization will both lead investment, co-lead and invest alongside venture capitalists." The new venture firm will focus on investing in the U.S., Europe and Asia, SABIC added. It will target investments in advanced materials and composites, alternative feedstocks for chemicals and materials as well as alternative energy and clean technology. SABIC, which had a record net profit in the third quarter, said in March it plans to boost its spending on technology, particularly for renewables.