In a landmark deal reflecting the Kingdom’s growing tech sector, Waed Ventures, the venture capital arm of Saudi Aramco, has backed a $30 million funding round for local artificial intelligence company Lucidia, marking the largest fundraising operation of its kind for an AI firm in the Kingdom.
Introduction: A milestone achievement in the Kingdom
Saudi Aramco’s venture capital arm, Waed Ventures, has supported a $30 million Series B funding round for local artificial intelligence company Lucidia, marking the largest fundraising operation of its kind for an AI firm in the Kingdom. This investment highlights the growing momentum in the Saudi tech sector and reflects confidence in the ability of local companies to innovate and compete on a broader scale.
Deal details and partners
Waed Ventures participated in the round alongside lead investor Impact46. Integration Ventures, SparkLabs, and returning investors Rawa Growth Fund and ARG also joined, according to a statement released by Lucidia. Individual investment amounts were not disclosed. The deal adds to a wave of Series A and B activity gaining momentum in Saudi Arabia and the United Arab Emirates amid increased government support and growing investment appetite, according to data platform Magnitt.
Who is “Lucidia”?
Founded in 2016, Lucidia develops customer experience software using proprietary Arabic-language AI models. The Saudi-headquartered company operates in 11 countries and serves clients across the telecommunications, finance, and public sectors. The latest funding will be allocated to expand its suite of AI products, including digital agents that automate customer-facing roles while ensuring compliance with local data regulations.
Lucidia’s focus on the Arabic language gives it a significant competitive advantage in the region. Most global AI models are primarily trained on English, limiting their ability to understand the nuances of the Arabic language and its various dialects. By building its own models, Lucidia can provide more accurate and effective solutions for its customers in the Middle East.
Investment momentum in the region
This deal comes at a time when the Middle East is witnessing a surge in investment in tech startups. Governments in countries such as Saudi Arabia and the UAE are providing significant support for entrepreneurship and innovation as part of their efforts to diversify their economies away from oil. This support, coupled with the availability of venture capital, creates a fertile environment for the growth of companies like Lucidia.
The participation of an investment arm the size of Saudi Aramco’s Waed Ventures not only provides capital, but also grants significant credibility to the startup and opens doors to potential strategic partnerships.
Conclusion: A future vision backed by investment
Lucidia’s successful funding round represents a milestone not only for the company itself, but for the entire artificial intelligence sector in the Kingdom of Saudi Arabia. It proves that local companies are capable of attracting substantial investments and developing cutting-edge technology that meets regional market needs. With continued investments and government support, more success stories like Lucidia are expected to emerge, reinforcing the Kingdom’s position as a regional hub for technological innovation.
